Ahead of Remittance Rule, CFPB Outlines Examination Procedures, Unveils Online Tool (Oct. 24, 2013)
With new regulations on remittance transfers set to take effect next week, the CFPB laid out its standards for examining companies covered by the rules. In Jan. 2012, the CFPB issued its final rule outlining remittance regulations as set by the Dodd-Frank Act. The rule was revised in May 2013 after complaints from industry participants who said the original regulations were confusing. The effective date of the rule was pushed back to accommodate the revisions. Now set to go into effect on Oct. 28, the revised rules cover areas including: fee disclosures; error resolutions; and transfer cancelation and refund rights.
Ahead of the rule’s implementation, the CFPB this week posted on its Website the procedures it will use in examining remittance providers. Posting the procedures will reduce uncertainty as to just what the CFPB expects from money transmitters, according to the agency. “Consumers need and deserve to have greater transparency and basic consumer protections when transferring money internationally,” said CFPB Director Richard Cordray. “Today’s examination procedures will help ensure that they are getting just that from their remittance providers.”
In addition to detailing the agency’s examination procedures, the CFPB also is making available a Web-based, open source tool to make regulations easier to find, read and understand. Known as eRegulations, the tool enables users find definitions of specific terms within regulatory text, move between different versions of regulations, and access official interpretations, appendices and analyses of regulations. The eRegulation tool is still “a work in progress,” the agency said. Users can send feedback to CFPB_eRegs_Team@cfpb.gov.