WASHINGTON (Reuters) – The U.S. consumer watchdog on Tuesday proposed making everlasting an exemption that permits sure banks and credit unions to estimate the worldwide remittance charges they cost shoppers in situations when it might be too costly for the companies to offer actual figures.
The Consumer Financial Protection Bureau (CFPB) additionally proposed elevating the transaction threshold at which corporations could also be completely exempted from the rule from 100 to 500 or fewer remittances yearly, decreasing the burden on over 400 banks and virtually 250 credit unions, the CFPB stated.
The proposal is topic to public session.
International regulators have voiced considerations up to now that U.S. banks could also be stepping again from providing abroad remittances because of the regulatory burden, together with strict anti-money laundering provisions.
Tuesday’s proposal comes after CFPB in April requested for business suggestions on its present remittance regulation, which usually requires lenders to confide in shoppers the precise change price, charges and the sum of money anticipated to be delivered to the recipient when making a worldwide wire switch.
The proposal additionally seeks to codify a short lived protected harbor, resulting from expire in July 2020, that permits banks and credit unions to offer estimates of the full value to shoppers relatively than the precise quantity when transferring cash overseas.
“A number of credit unions have effectively been prevented from offering remittance transfer services because of the high compliance costs and associated burdens,” stated Carrie Hunt, common counsel on the Washington-based National Association of Federally-Insured Credit Unions, including that the commerce group would proceed to push for credit unions to be exempted all collectively.
Reporting by Katanga Johnson in Washington; Editing by Michelle Price and Matthew Lewis