Compliance Blog

Written by Steve Van Beek

Earlier this afternoon, the CFPB issued Bulletin 2012-08 on the remittance transfer requirements under Regulation E:

"The Consumer Financial Protection Bureau (CFPB or the Bureau) expects to issue a proposal next month to refine three elements of its rule regarding foreign remittance transfers.  The proposal will be narrowly targeted to address the rule’s provisions on: (1) errors resulting from incorrect account numbers provided by senders of remittance transfers; (2) the disclosure of certain foreign taxes and third-party fees; and (3) the disclosure of sub-national, foreign taxes.  The Bureau will proceed on a fast track with a notice of proposed rulemaking, which will propose these changes. This notice will propose to amend the final rule issued earlier this year, currently set to take effect on February 7, 2013.  The notice will also propose a brief extension of the effective date of the rule until 90 days after the Bureau finalizes the proposal. The Bureau anticipates providing this extension in order to permit providers to adjust their systems in response to the proposed requirements.  The Bureau expects that the proposed effective date will be sometime during the spring of 2013." 

In short, the CFPB will be proposing changes to certain parts of the remittances rule (although it doesn't appear to be considering an increase in the 100 safe harbor level) and this proposal will also extend the effective date of the rule.  

The CFPB's Bulletin indicates it will fast-track the proposal and final rule and that the new effective date will be later in the Spring 2013.  For additional information, be sure to review the proposed rule when it is issued.  The CFPB also has a remittances page - including a PDF document with the full regulation and staff commentary - which might be useful.