Oct. 17, 2012 – The Consumer Financial Protection Bureau plans to address a liability issue regarding errors in international remittance transfers in the near future, CFPB Director Richard Cordray said in a webinar Tuesday.
The webinar provided an overview of the CFPB’s final rule on international remittances. The bureau’s final rule generally requires disclosure of exact amounts to be received in a foreign currency, fees and taxes, but estimates of these amounts are permitted in several situations.
Cordray acknowledged providers’ concerns about liability in the event funds are transmitted to the wrong account due to incorrect information provided by the sender, and when the provider cannot reverse the transaction. He said the CFPB shares those concerns and will address that issue soon, but he gave no details on just when or how.
Credit unions and others facilitating international remittances have until Feb. 7 to comply with the new requirements, which will apply to all providers that facilitate more than 100 remittances a year.
NAFCU continues to urge a higher transaction limit, such as 600 a year, for exempt institutions. Meanwhile, Dana Miller, senior counsel in the CFPB’s Office of Regulation, said during Tuesday’s webinar that there is nothing in the rules to prohibit an institution from setting a cut-off below 100 to avoid triggering the new requirements.
In other comments, Cordray said Monday’s release of a small business compliance guide on international remittances is a first draft. He said the bureau welcomes feedback on the guide. Meanwhile, Tuesday's webinar is being archived and will remain available on the CFPB website.