Members of a variety of industry groups are asking the Consumer Financial Protection Bureau to delay implementation of its new rules for remittances. A delay will allow the groups to implement the rules across systems and processes in a thoughtful, orderly way, the groups said.
The new remittance transfer rule would require money transfer providers to make certain disclosures to a consumer at the time of a transfer request. These include the exchange rate, as well as fees and taxes associated with the transfer.
According to a story by Bank Credit News, the changes a remittance transfer provider must make to comply with the rule are complex and time intensive. The CFPB has already proposed a rule that would allow a 90-day delay of the effective date for the new rule following its finalization.
However, in a letter to the CFPB, concerned groups said that 90 days might not be sufficient.
"Although we are still in conversations with our member institutions regarding the impact of the December Proposed Rule, we have heard concerns that, depending on the requirements of the final rule, the proposed 90 day period may not be sufficient to allow remittance transfer providers to develop, implement and test changes in accordance with their compliance and risk management programs," the groups said.
Signatories to the letter included the ABA, the Clearing House Association, Consumer Bankers Association, The Financial Services Roundtable, Independent Community Bankers of America, NACHA — The Electronic Payments Association, and the National Association of Federal Credit Unions.
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