CFPB Issues New Proposal on International Remittances

December 27, 2012 by Credit Union Magazine

Agency also delays the final rule’s implementation date.

The Consumer Financial Protection Bureau (CFPB) has proposed revisions to its final rule on international remittances and has delayed the rule’s implementation from Feb. 7 until 90 days after it issues the new final rule.

This proposal focuses on:

►Disclosure of foreign taxes and institution fees. The proposal would provide increased flexibility and guidance regarding the disclosure of taxes imposed by a foreign country’s central government, as well as fees imposed by a recipient’s institution for receiving a remittance transfer in an account.►Disclosure of subnational taxes in a foreign Country. The proposal would require disclosure of foreign taxes imposed by a country’s central government, but would eliminate the requirement to disclose taxes imposed by foreign regional, provincial, state, or other local governments.

►Errors from incorrect account information. Under the proposal, when the provider can demonstrate that the consumer provided an incorrect account number (and when certain other conditions are satisfied), the provider would be required to attempt to recover the funds—but it would not bear the cost of funds that can’t be recovered.

The CFPB expects to confine changes to these areas. However, CUNA’s advocacy efforts with the agency will continue in an effort to improve the entire international remittance rule, including the current 100 transfers per year exemption level. The agency is not planning to increase the exemption level at this time.