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.
The CFPB stated that the proposal would also increase a safe harbor threshold when remittance transfers are made under "the normal course" of business, ultimately reducing the compliance cost for entities making 500 or fewer remittance transfers annually (up from 100).
Comments on the proposal must be submitted within 45 days after publication in the Federal Register.
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