The Consumer Financial Protection Bureau (CFPB) has proposed changes to its international money transfer regulation that require transfer providers, such as banks and credit unions, to report certain fees upfront. They also must report exactly on exchange rates.
Yesterday,the CFPB proposed and extension of an exception to the provision authorized by both Dodd-Frank and the Consumer Protection act that allows transfer providers to to estimate third-party fees and exchange rates when providing remittance transfers to their accountholders when they cannot determine exact amounts. This exception is currently in effect, but set to expire on July 15. Financial institutions like banks and credit unions have reported that market conditions are such that transfers to certain parts of the world would become impossible should the provision be allowed to expire.
Richard Hunt, president and CEO of the Consumer Bankers Association responded to the CFPB proposed changed, shortly after it was announced April 15th.
“We appreciate the CFPB’s recognition of the complexity of disclosures associated with international money transfers. This action will allow consumers and their families, who rely on these transfers, uninterrupted access.”
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