Policy News

BAFT Responds to CFPB’s Proposed Amendment of the Remittance Rule

On January 21, 2020, BAFT and other industry associations responded to the Consumer Financial Protection Bureau’s Notice of Proposed Rulemaking that would amend the Remittance Rule.

BAFT jointly with The Clearing House, the Consumer Bankers Association, and the American Bankers Association, submitted a comment letter to the US Consumer Financial Protection Bureau (CFPB) supporting it proposed amendments to the remittance rule. The amendments would create two new exceptions—one for exchange rates and one for fees—allowing banks to continue to rely on estimates when providing disclosures to customers. The CFPB proposed the amendments in response to concerns voiced earlier by the banking associations regarding the expiration in July 2020 of the rule’s existing temporary exception.  Also in the joint comment letter, BAFT encouraged the CFPB to make greater use of the rule’s existing permanent country exception, which allows estimation of disclosures for remittance transfers to certain countries where exact amounts can be particularly difficult to determine.  These changes would permit banks to continue to serve the needs of their customers who wish to initiate remittance transfers directly from their depository accounts.

To view the joint letter, visit our Library of Documents under the Comment Letters section.