The CFPB announced that it has updated its final remittance transfer rule, in an effort to lessen the burden on small providers, such as community banks and credit unions. The updated rule modifies the final rule issued in February of this year, which asked for public comment on a safe harbor and disclosure requirements. The updated rule provides a safe harbor for institutions that provided 100 or fewer remittance transfers in the previous calendar year and provides 100 or fewer in the current year, effectively finding that such institutions do not provide remittance transfer in the “normal course of business.” Institutions that provide more than 100 remittance transfers will have six months to comply with subpart B of the rule, which sets forth the requirements of remittance transfers. The final rule also modifies the February 2012 rule’s date of transfer and disclosure requirements.
Alert August 07, 2012