CFPB Proposes Extending Remittance Transfers Exemption

The CFPB proposed extending an exemption that allows insured institutions to disclose estimates to consumers of the exchange rate and covered third-party fees instead of exact amounts when sending international money transfers, or remittance transfers. The exemption is currently set to expire on July 21, 2020.

According to the CFPB, the proposal to amend Regulation E ("Electronic Fund Transfers") would allow consumers to continue to send remittances from their bank accounts to various destinations while also lessening the burden of compliance for banks and credit unions. The CFPB stated that the estimates disclosed to consumers would be allowed when it is economically infeasible to provide exact figures.