WASHINGTON (9/28/12)--The Consumer Financial Protection Bureau (CFPB) has announced an Oct. 16 webinar and new guidance to help credit unions and other financial institutions prepare for pending remittance transfer regulations.
The CFPB's new remittance rule, which is scheduled to take effect on Feb. 7, will require remittance transfer providers to disclose the exchange rate, all fees associated with a transfer, and the amount of money that will be received on the other end. Remittance transfer providers also will be required to investigate disputes and correct errors. The CFPB has provided a safe harbor exemption from the rule for remittance providers that transact 100 or fewer remittances per year.
The agency this week published a safe harbor list of countries that qualify for an exception in the remittance rule. Remittance providers in these countries are allowed to file estimates of certain figures in lieu of disclosing exact amounts, as local law does not permit financial institutions to disclose the exact amounts of transactions.
The October remittance webinar will give participants an overview of the rule. Credit unions, money transmitters, banks and other companies that send money abroad for consumers, as well as other organizations that work with or represent consumers who send money abroad, can have their compliance questions answered, the CFPB said. Participants may send their questions to the CFPB until Oct. 5, and must register for the webinar by Oct. 9, the CFPB said.
The CFPB said it is also planning to release a small-business compliance guide to the remittance rule soon.
The Credit Union National Association (CUNA) continues to urge the CFPB to consider ways to lessen the impact of the final international remittance transfer rule on credit unions, and has asked the agency to increase the safe harbor exemption beyond 100 transfers.
CUNA President/CEO Bill Cheney, General Counsel Eric Richard and Deputy General Counsel Mary Dunn met with CFPB Director Richard Cordray on the remittance issue earlier this month. Cheney urged Cordray to distinguish in the agency's rulemaking between credit unions that champion consumers' interests and other service providers in the financial marketplace. Cheney and Cordray also discussed foreign tax disclosures and liability issues related to the remittance transfer regulations during that meeting.
For more on the CFPB guidance and the webinar, use the resource link.