Newsroom
CFPB offers clarification with new FAQs on remittance rule
The CFPB has issued a set of FAQs to provide clarification on the bureau's Remittance Rule, which was recently amended to increase the safe harbor threshold from 100 transfers in the previous and current calendar year to 500 transfers.
The FAQs clarify whether failure to deliver remittance transfer funds to the designated recipient by the disclosed date – due to government closures in recipient or intermediary countries related to the coronavirus pandemic – is an error under the remittance rule.
Amid the coronavirus pandemic, the bureau previously announced that it will suspend supervisory and enforcement action against certain remittance transfer providers under the temporary fee and exchange rate exception, which is set to expire July 21. The final rule provides the replacement framework that will be in place once the exception expires.
NAFCU has continuously worked with the bureau to obtain relief for credit unions under the rule and, although the association had advocated for a larger threshold increase, Director of Regulatory Affairs Ann Kossachev called the increase a step in the right direction. Following the issuance of the rule, the association sent members a Final Regulation Alert to offer an outline of what credit unions should know about the rule.