The Consumer Financial Protection Bureau will give federally insured banks and credit unions five additional years to comply with new disclosure requirements affecting international money transfers. The extension was included among recently finalized amendments to the Bureau’s international remittance transfer rule.
Prior to passage of the Dodd-Frank Act, international money transfers were generally not covered by existing federal consumer protection regulations. In Response, the legislation expanded the scope of the Electronic Fund Transfer Act to provide protections for remittance transfer senders and authority to implement the new requirements transferred from the Federal Reserve Board to the CFPB. The Bureau’s subsequent rule, approved in 2012 and amended last week, created new consumer protections for international money transfers, requiring remittance transfer providers to disclose third-party fees, as well as any exchange rate that will apply to the transfer. The rule also provides consumers with error resolution and cancellation rights.
