WASHINGTON (1/24/14)--Larger nonbank international money transfer providers would be subject to the Consumer Financial Protection Bureau's existing remittance regulations under the terms of a new proposal released Thursday.
"The CFPB's remittance rule provides strong consumer protections like better disclosures and the correction of errors," CFPB Director Richard Cordray said in a release. "Today's proposed rule would help us provide oversight across the entire market so consumers get the protections they deserve," he added.
The proposal defines a larger nonbank international money transfer provider as an entity that provides more than 1 million international money transfers annually.
Nonbank providers transfer approximately $50 billion annually through about 150 million individual international money transfers, according to CFPB estimates. The proposed rule would bring new oversight to the 25 largest nonbank money transfer firms.
The proposed rule will be open for public comment for 60 days after it is published in the Federal Register.
The CFPB's remittance rule requires transfer firms to provide prepayment and receipt disclosures to the consumer sender that include the exchange rate, certain fees and taxes associated with a transfer, and the amount of money that will be received on the other end of the transfer. Remittance transfer providers are also required to investigate disputes and correct errors.