In August, the Consumer Financial Protection Bureau (CFPB) amended its remittance transfer regulation (Regulation E, Subpart B) and the official staff commentary to the regulation. The Federal Register published the rule on Sept. 18, 2014; it goes into effect Nov. 17, 2014.
The amendments extend the rule’s temporary exception that permits insured depository institutions to provide estimated disclosures (if certain conditions are met) instead of exact disclosures, as is generally required under the remittance transfer rule.
The exception had been scheduled to expire on July 21, 2015. Based on a determination that terminating the exception would negatively affect insured institutions’ ability to send remittance transfers, the CFPB extended the temporary exception to July 21, 2020.
The CFPB adopted clarifications to the rule in the following areas:
• For purposes of the remittance rule, consider U.S. military installations abroad to be located in a state, not a foreign country. Therefore, don’t apply the remittance rule on transfers between individuals and accounts in the U.S. and those on U.S. military installations located abroad.
• Determine whether the remittance transfer is for personal, family, or household purposes by ascertaining the account’s primary purpose. A transfer made from a business account (commercial purpose) wouldn’t be covered by the regulation.
• Faxes satisfy certain provisions that require remittance transfer providers to provide disclosures in writing.
• Under certain limited circumstances, a remittance transfer provider may provide oral disclosures after receiving a remittance inquiry from a consumer in writing.
• Providers may use consumer finance.gov or consumer finance.gov/sending-money (the remittance specific Web page) on disclosures, as well as the Spanish-language website, consumer finance.gov/enviar-dinero.
• The agency offers clarification on what constitutes an “error” caused by delays related to fraud and related screenings; and the remedies for certain errors, including the clarification of a comment in the rule’s official interpretation.
Find the final rule on consumer finance.gov, along with a revised version of the agency’s “Small Entity Compliance Guide: International Fund Transfers” (dated Aug. 22, 2014). Credit unions also can access Regulation E via the agency’s eRegulations tool at consumer finance.gov/eregulations.