The Consumer Financial Protection Bureau on Friday extended by five years a temporary exception in its remittance rule that allows sending institutions to estimate fees charged by the receiving institution. The original provision would have expired in July 2015, but the exception will now last until June 21, 2020, to facilitate industry compliance.
Under the rule, which took effect last fall, a sending financial institution is generally required to disclose fees charged by third parties, including the recipient institution, as well as the exchange rate.
The exception allows federally insured institutions to estimate these charges for certain open-network transfers when they cannot determine exact amounts.
The CFPB also provided a number of interpretive clarifications and technical corrections to the rule.
Read the final rule.
If you would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.