Removing Barriers Blog

CFPB Issues Remittances Policy Statement
Posted April 13, 2020 by CUNA Advocacy

The CFPB issued a policy statement on remittance transfers that outlined the Bureau’s plan to adopt a flexible approach to supervision and enforcement of remittance transfers. Previously, the Bureau proposed amendments to the Remittance Rule in December 2019 in part to address the effects of the expiration of that temporary exception and expects to issue a final rule in May.   

Section 919 of the Electronic Fund Transfer Act (EFTA), as implemented by the Bureau’s Remittance Rule, requires a remittance transfer provider to disclose certain information to consumers who send remittance transfers, including information related to the exact costs of a transfer.  The statute also provides insured institutions a temporary exception to that requirement which allows them to disclose estimated exchange rates and certain third-party fees, instead of exact amounts, in some circumstances.  By statute, that temporary exception will expire on July 21 of this year.  

The Bureau expects that after the temporary exception expires, some insured institutions that currently disclose estimates under the temporary exception may have challenges disclosing actual costs and thus without intervention may cease providing remittance services to their customers.  

For international remittance transfers that occur on or after July 21, 2020 and before Jan. 1, 2021, the policy statement states that the Bureau will neither cite supervisory violations nor initiate enforcement actions against insured institutions for continuing to provide estimates to consumers under the temporary exception, instead of actual amounts.