The CFPB has proposed several amendments to its remittance rule.  Comments on the proposal must be filed no later than January 21, 2020.

The proposed amendments are:

• An increase in the rule’s safe harbor threshold that currently removes from the rule’s coverage an entity that provided 100 or fewer remittance transfers in the previous calendar year and provides 100 or fewer remittance transfers in the current calendar year.  The proposal would increase the safe harbor threshold from 100 transfers to 500 transfers annually.
• Changes to the rule to mitigate the effects of the July 21, 2020 expiration of the statutory exception that allows insured institutions, under certain conditions, to disclose estimates to consumers of the exchange rate and covered third-party fees instead of exact amounts.  The proposed changes are:
  • With regard to the exchange rate, a permanent exception that would allow insured institutions to estimate the exchange rate for transfers to a particular country if, among other things, the insured institution made 1,000 or fewer transfers in the prior calendar year to the particular country for which the designated recipients of such transfers received funds in that country’s local currency.
  • With regard to covered third-party fees, a permanent exception that would allow insured institutions to estimate such fees for a transfer to a particular designated recipient’s institution if, among other things, the insured institution made 500 or fewer transfers to the designated recipient’s institution in the prior calendar year.

The Bureau is also seeking comment on the rule’s permanent exception that allows providers to use estimates for transfers to certain countries as determined by the Bureau.  The Bureau has currently identified five countries that qualify for this exception.  The Bureau asks for suggestions regarding possible changes to the substantive criteria used to determine whether a country qualifies for the list (which include the law of a country precluding a determination of exact disclosure amounts) and the process the Bureau uses for adding countries to the list.  In addition, the Bureau asks for comment on whether any transfer providers use estimates pursuant to the permanent exception that permits a provider to make its own determination that the laws of a  recipient country not on the Bureau’s list, or the method of sending transfers to such country, do not permit a determination of exact amounts.