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CFPB delays remittance transfer rule effective date

Posted in Remittance Transfers

The CFPB has issued a final rule delaying the effective date of  the remittance transfer rule pending finalization of its December 2012 proposal to make changes in three areas.  The effective date had been set for February 7, 2013.  In addition to the substantive changes, the CFPB had proposed to delay the effective date until 90 days after the changes are finalized. Comments on the proposed delay were due by January 15 and comments on the substantive changes are due by January 30.  

In October 2012, the CFPB released a safe harbor list of countries that qualify for an exception in the remittance rule that allows estimated disclosures of certain amounts instead of the disclosure of an exact amount where the laws of the recipient country do not permit a determination of the exact amount. When the list was released, the CFPB indicated that it would not remove countries from the list before May 1, 2013.  In the final rule delaying the remittance rule’s effective date, the CFPB indicated that it would reassess the earliest date on which countries may be removed from the list in connection with finalization of the December 2012 proposal but that date will not be sooner than May 1, 2013.