Remittance Rule Assessment Report Finds Most CUs Fall Under Safe-Harbor

The Bureau of Consumer Financial Protection (BCFP) Friday released an assessment report on its remittance rule, which found that most credit unions that offer remittance transfers fall under the 100-transfer threshold.

Although the Bureau's analysis indicated that credit unions do not constrain their transfers to stay within the safe-harbor, many credit unions have stopped offering remittance transfer services because of high costs.

The Bureau's assessment also found that the number of credit unions offering remittance transfers increased in the two years after the rule took effect, compared to the two years before, although it noted that the increase was partly due to changes to the data collection question.

While only 17 of the 200 credit unions surveyed responded, they represented 48 percent of the total remittance transfers provided by credit unions in 2017. The Bureau received a total of 69 responses including 27 from money services businesses and 25 from banks.

The Bureau began its assessment of the rule last year. The Dodd-Frank Act requires the Bureau to conduct reviews of rules that are classified as "significant" within five years of the rule's effective date.

in Compliance & Regulatory News