NAFCU Statement on CFPB’s Final Rule On Remittance Transfers
Washington (Aug. 22, 2014) - The National Association of Federal Credit Unions (NAFCU) issued the following statement in response to the Consumer Financial Protection Bureau’s (CFPB) announcement today that it finalized its remittance transfer rule that extends a temporary reporting exception to federally insured credit unions and banks on certain international remittance transfers for another five years, to July 21, 2020.
“NAFCU welcomes the extension and our members are happy to see the Bureau explicitly specify that U.S. military installations located abroad are states for the purposes of the remittance rule.” said NAFCU Director of Regulatory Affairs Michael Coleman. “NAFCU and our members, however, remain concerned about the overall rule and the incredible burden it places on any credit union facilitating more than 100 remittances yearly for its members. As it stands, this rule is pushing credit unions out of the market.”
In the final rule, the CFPB establishes that transfers to individuals and accounts located on U.S. military installations located abroad, as well as transfers from individuals and their accounts located on U.S. military installations abroad to designated recipients in the United States will be excluded from the remittance rule’s application.
The exception allows remittance transfer providers to estimate certain third-party fees and exchange rates in a remittance transfer if:
the provider is a federally insured depository institution, including a credit union;
the remittance transfer is sent from the sender’s account with the provider; and
the provider cannot determine the exact amounts for reasons outside its control.
NAFCU urged this exception in discussions with and comment letters to the CFPB leading up to the final rule, which took effect last October.
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.