Under a proposed rule, certain nonbank international money transfer providers would be subject to supervisory oversight from the Consumer Financial Protection Bureau. The rule would apply to those nonbank providers which make more than one million such transfers annually; currently, about 25 of the largest nonbank providers meet that criterion, the bureau said.
If the proposed rule is finalized, the CFPB would collect reports from and examine those nonbank providers to ensure the enforcement of relevant federal consumer financial laws, such as the Electronic Funds Transfer Act and Regulation E. The CFPB would use the same examination procedures for nonbank remittance providers it currently uses for bank providers.
Comments on the proposed rule may be submitted through www.regulations.gov for 60 days after its publication in the Federal Register.
The current proposal follows publication of the bureau’s updated version of the remittance transfer rule three months ago. The examination procedures outlined in October were intended to ensure compliance with federal laws, particularly those on required disclosures for fees and exchange rates, refund and cancellation standards, and error resolution processes.
“The CFPB’s Remittance Rule provides strong consumer protections like better disclosures and the correction of errors,” CFPB Director Richard Cordray said. “Today’s proposed rule would help us provide oversight across the entire market so consumers get the protections they deserve.”
If this rule is finalized, it would be the Bureau’s fourth larger participant rule. The other three were for larger participants in markets for student loan servicing, debt collection and consumer reporting.