Dec. 21, 2012 – The Consumer Financial Protection Bureau on Friday issued a revised proposal on its international remittance rule that would delay implementation of the entire remittance rule to 90 days after the changes are finalized.
The proposal addresses a limited set of issues, including 1) errors resulting from incorrect account numbers provided by senders of remittance transfers; (2) the disclosure of certain foreign taxes and third-party fees; and (3) the disclosure of sub-national, foreign taxes.
Originally, the rule was slated to go into effect Feb. 7. The CFPB says it is providing the extension to give providers more time to adjust their systems to the proposed requirements. The CFPB expects that the proposed effective date will be sometime during the spring of 2013.
This fall, CFPB Director Richard Cordray reached out to NAFCU President and CEO Fred Becker to seek input on the regulatory burden the remittance rule posed to credit unions. During that call, Cordray noted particular interest in the extent to which the rule would cause credit unions to cease offering international remittances.
NAFCU has repeatedly cautioned that the new rule is too onerous for credit unions and that the rule's safe harbor for those handling no more than 100 remittances a year is inadequate.
The association has suggested that the threshold be raised to 600 transactions a year, which would allow 50 transactions on average per month. NAFCU has warned that credit unions that handle a small number of remittances could be forced to cease offering the service to avoid the added compliance burden.
NAFCU will continue to seek further improvements in the rule and will issue a Regulatory Alert