WASHINGTON, DC (April 15, 2014) – The National Association of Federal Credit Unions (NAFCU) issued the following statement in response to the Consumer Financial Protection Bureau (CFPB) announcement today that is proposing to extend a reporting exception provided to federally insured credit unions and banks on certain international remittance transfers for another five years, to July 21, 2020.
NAFCU welcomes the proposed extension but notes ongoing concerns about the overall rule, which increases regulatory burden and costs for any credit union facilitating more than 100 remittances yearly for members. “As it stands, this rule is pushing credit unions out of the market,” said NAFCU Regulatory Affairs Counsel Angela Meyster.
The bureau is also proposing clarifications on a number of issues, including the treatment of U.S. military installations abroad, purpose of transfers in defining rule coverage, permissibility of oral disclosures and error resolution.
The exception allows remittance transfer providers to estimate certain third-party fees and exchange rates in a remittance transfer if:
- the provider is a federally insured depository institution, including a credit union;
- the remittance transfer is sent from the sender’s account with the provider; and
- the provider cannot determine the exact amounts for reasons outside its control.
NAFCU urged this exception in discussions with and comment letters to CFPB leading up to the final rule, which took effect last October. The exception is currently set to expire July 21, 2015, but CFPB notes it is authorized to extend it under the Dodd-Frank Act if the lack of it would have a negative impact on institutions’ ability to facilitate international remittances.
CFPB said it will take comments on the proposed rule for 30 days following its publication in the Federal Register. NAFCU will submit comments on behalf of its members.
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The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.