As advocated by ICBA, the Consumer Financial Protection Bureau issued a policy statement extending a community bank exemption to its rule on remittance transfers due to the COVID-19 pandemic.
The exception—which allows community banks to provide estimates on required disclosures if certain criteria are met—is set to expire on July 21. Under the new policy statement, the CFPB will neither cite supervisory violations nor initiate enforcement actions against insured institutions for continuing to provide estimates under the temporary exception through the end of the year.
The CFPB said it expects some institutions to have challenges disclosing actual costs as the temporary exception expires and will therefore cease providing remittance services.
ICBA, which called on the CFPB to provide the remittance relief, has updated its frequently asked questions on the federal response to the COVID-19 pandemic with this remittance information.