United States: CFPB Issues Final Remittance Rule
The Consumer Financial Protection Bureau has published a final rule covering remittances transfers (Rule).
The Rule imposes requirements on entities that send international money transfers on behalf of consumers.
Among its requirements, the Rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.
The Rule also allows for depository institutions to estimate certain fees and exchange rate information under certain circumstances, but by statute, this provision expires in July 2020.
Under the Rule, certain banks and credit unions are allowed to continue providing estimates of the exchange rate and certain fees under certain conditions. This flexibility, it is understood, could preserve consumers’ ability to send remittances from their bank accounts to certain countries or recipient institutions.
Additional details are available here.
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