By Richard Roth, J.D., Editor, the CCH Federal Banking Law Reporter, CCH Bank Compliance Guide, Bank Digest; co-author, Dodd-Frank Wall Street Reform and Consumer Protection Act—Law, Explanation and Analysis.
As previously announced, the CFPB has proposed amendments to the rule governing international remittance transfers to address concerns of transfer service providers. According to the bureau, the proposal builds on a February final rule on international money transfer, which was supplemented in August). The intent of the regulatory action is to create a comprehensive consumer protection regime for remittance transfers sent by consumers in the United States to individuals and businesses in foreign countries.
The amendments are intended to provide increased flexibility and guidance on disclosing taxes imposed by a foreign country's central government and fees imposed by a recipient's institution for receiving a remittance transfer in an account. They would require disclosure of foreign taxes imposed by a country's central government but eliminate the requirement that a service provider disclose taxes imposed by foreign regional, provincial, state or other local governments. They also would provide that, if a consumer gave an incorrect account number and other conditions were met, a transfer service provider would be required to attempt to recover funds deposited in an incorrect account but would not bear the cost of funds that could not be recovered.