CFPB Remitttance Transfer Rule: In Affect Now
October 31 The remittance transfer rule is designed to protect consumers who send money to foreign countries via Electronic Funds Transfers, or "remittance transfers." The rule requires that the company making the transfer (often non-depository "money transmitters") provide the consumer with a disclosure and receipt that lists the exchange rate, fees and taxes charged, and the amount of money to be delivered abroad. An amendment to the rule in July 2013 made it optional, in certain circumstances, to disclose fees and taxes imposed by the designated recipient’s institution, since the originating institution does not always have that information for money transmitters. The amendment also clarifies the responsibility and potential liability of a remittance transfer provider when a sender provides incorrect or insufficient information. The rule also requires that consumers be given 30 minutes to cancel the transfer without penalty, among several other protections. This rule is effective October 28, 2013. See full NASCUS Summary here.