CFPB Releases Small-entity Compliance Guide for Remittance Transfers

The Consumer Financial Protection Bureau (CFPB) released a new compliance guide for small entities that it is designed to make it easier to understand the remittance transfers rules that will take effect on Feb. 7, 2013. Although the guide is not a substitute for the rule, it highlights issues that businesses—especially small businesses and those that work with them—should consider while implementing the new requirements.

Because the rule covers a broad range of companies and transfers, any business that sends money internationally for consumers may find this guide helpful. This guide will be particularly useful in determining whether a credit union’s transfers are regulated by this rule, and if so, what the credit unions compliance obligations are. It discusses exceptions that might apply to credit unions, including a temporary exception that allows insured credit unions to use estimates in their disclosures. This guide may also be helpful to agents, software providers, and other companies that serve as business partners to remittance transfer providers.

The CFPB’s remittance rule will require remittance transfer providers to disclose the exchange rate, all fees associated with a transfer, and the amount of money that will be received on the other end. Remittance transfer providers also will be required to investigate disputes and correct errors. The CFPB has provided a safe harbor exemption from the rule for credit unions that transact 100 or fewer remittances per year.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Around the NW, Compliance News, NWCUA.