ICBA called on the Consumer Financial Protection Bureau to continue exempting community banks from its final rule on remittance transfers. Responding to a CFPB request for information following its five-year review of the rule, ICBA noted that a temporary exception for certain banks is set to expire on July 21, 2020.
The rule requires remittance providers to disclose the exact exchange rate, expected amount to be received, and amount of certain fees before and after each transaction. The temporary exception allows insured depository institutions to provide estimates on required disclosures if certain criteria are met.
ICBA wrote that community banks use correspondent banks to execute remittance transfers, restricting their ability to provide exact information on fees and exchange rates. Allowing the exception to expire would require many entities to stop offering the service to consumers, ICBA wrote.
ICBA offered several alternatives to ensure continued access, such as using its authority to allow insured depository institutions to continue relying on estimates in their disclosures or issuing a “small financial institution exemption” for banks with assets of $10 billion or less.
Read ICBA Comment Letter
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