CFPB Announces More Changes to Come for Remittance Rule, Delayed Implementation
By CHRIS DANIEL, KEVIN L. PETRASIC, HELEN Y. LEE, & HEENA A. ALI
On November 27, 2012, the Consumer Financial Protection Bureau (CFPB) issued a bulletin announcing the agencys intent to propose amendments to its not-yet-effective final rule on foreign remittance transfers that was issued earlier this year and scheduled to become effective on February 7, 2013 (Remittance Rule). The Remittance Rule implements Section 1073 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The forthcoming proposed rulemaking is expected to refine three elements of the Remittance Rule in response to feedback received from industry participants regarding implementation challenges. The proposed revisions specifically address: (1) errors resulting from incorrect account numbers provided by senders of remittance transfers; (2) disclosure of certain foreign taxes and third-party fees; and (3) disclosure of sub-national, foreign taxes. Importantly, the CFPB will also delay the effective date of the Remittance Rule until 90 days after the agency issues a final rule that includes the announced changes.