Gearing Up for Remittance Transfers Reg
The rule requires remittance transfer providers to give disclosures to consumers.
The CFPB remittance transfer rule, under Regulation E, requires remittance transfer providers to give certain disclosures to consumers sending remittance transfers.
Among other requirements, a provider generally must disclose to a sender the total amount the recipient will receive, as well as the applicable exchange rate, fees, and taxes.
One exception to the rule permits remittance transfer providers to estimate these amounts when a provider can’t determine the exact amounts it must disclose because the laws of the recipient country don’t permit such a determination.
The CFPB announced in late September the following countries qualify for this exception: Aruba, Brazil, China, Ethiopia, and Libya.
The list, subject to change, is effective Feb. 7, 2013. That’s also the effective date of the remittance transfer regulation.
The agency also released a guide on the Reg E remittance transfer rule for small businesses—International Fund Transfers: Small Entity Compliance Guide.
The guide “will make it easier to understand the new requirements. Although the guide isn’t 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 CFPB.