The Consumer Financial Protection Bureau (CFPB)’s new remittance rules will take effect on February 7, 2013. As such, the CFPB has issued a guide to give small businesses a leg up on preparing for the coming regulations.
If you work for a small business, deal in remittances or are just interested in how the CFPB operates, it’s worth a look.
“This guide will make it easier to understand the new requirements,” the CFPB wrote in a post announcing the report. “Although the guide is not a substitute for the rule, it highlights issues that businesses, in particular small businesses and those that work with them, should consider while implementing the new requirements.”
According to the guide, remittances are any international electronic transfer of $15 or more. This includes cash-to-cash money transfers, wire transfers, international ACH transactions, international transfers and some prepaid card transfers as well.
The CFPB notes that banks, credit unions, money transmitters, thrifts and broker-dealers are among those businesses most likely to be affected by the rule change, but that companies that consistently send 100 or fewer remittance transfers a year are not covered by the new rules.
Remittances transfers must disclose their transactions pre-payments to comply within the new rules. Disclosures should include the transfer amount, transfer fees and taxes, total amount of the transaction, exchange rates and other financial details.
To read the full report, as well as a list of other compliance guidelines set forth by the CFPB, click here.