Bureau updates small-entity compliance guide on remittances

The agency charged with consumer financial protection has updated its small-entity compliance guide on remittance transfers that incorporates May 2020 revisions to the agency’s remittance rule.

The guide, published by the Consumer Financial Protection Bureau (CFPB), is revised to address the increase in the “normal course of business” safe harbor threshold (from 100 transfers annually to 500 annuall) and the addition of two permanent exceptions that permit insured institutions to estimate certain disclosures in certain circumstances.

The guide notes the temporary exception that will expire on July 21, 2020, for insured depository institutions. As of July 21, the effective date of the rule changes, remittance transfer providers must disclose exact amounts unless the transfer qualifies under the permanent exceptions adopted in May, the guide notes.

Other compliance guide updates note that the guide is a “compliance aid” under the bureau’s related policy statement; include the CFPB’s current process for informal inquiries; reflect various formatting and administrative changes; and revise internal cross references to refer to sections of the guide.

Remittance transfer small-entity compliance guide (June 2020 update)