CFPB issues Request for Information on the Remittance Rule

The Consumer Financial Protection Bureau (CFPB) has issued a Request for Information (RFI) regarding potential regulatory changes to the Bureau’s Remittance Rule. The RFI seeks information on two specific areas of the rule.

These areas include:

  • Temporary Exception Expiration Questions: First, the RFI seeks information and evidence that may inform possible changes to the rule that would not eliminate, but would mitigate the effects of the expiration of a statutory exception for certain financial institutions. The Electronic Funds Transfer Act expressly limits the length of the temporary exception in the Remittance Rule to July 21, 2020 and does not authorize the Bureau to extend this term. Therefore, the exception will expire on July 21, 2020 unless Congress changes the law. 
  • Institution and Transaction Coverage Questions: In addition, the RFI seeks information and evidence related to the scope of coverage of the rule, including whether to change a safe harbor threshold in the rule that determines whether a person makes remittance transfers in the normal course of its business, and whether an exception for small financial institutions may be appropriate.

If you would like to review and/or comment on the RFI, it is available here

The Bureau has also published a revised version of the Remittance Rule assessment report. The original report inadvertently understated the approximate dollar volume of remittances made by depository institutions. The understatement does not affect any of the report’s conclusions. The revised version and the original version of the assessment report are available here.