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.
The CFPB has extended the effective date of its rule governing international remittance transfers. The rule had been scheduled to take effect Feb. 7, 2013. No future effective date was announced.
In December 2012, the CFPB proposed amendments to the rule, which is part of Reg E.--Electronic Fund Transfers (12 CFR 1005). The narrow amendments address three specific issues about required disclosures.
The bureau stated that the temporary delay of the effective date would generally benefit remittance transfer providers by delaying the start of any ongoing compliance costs. The additional time might also enable providers to build solutions that cost less than those that might otherwise have been possible. The bureau said it will set a new effective date when it takes action on the proposed amendments and that the rule and amendments will take effect simultaneously.