As the February 7 effective date for compliance with the CFPB's final remittance rule approaches, bankers are saying meeting all the requirements will not feasible.
"The rule requires remittance transfer providers to disclose the total amount of money that a recipient would receive through a transfer, factoring in the exchange rate, and any fees or foreign taxes, as well as the date that the money will be available," writes American Banker's Kate Davidson.
"It's one of those 'you can’t get there from here’ regulations," said Gene Elerding of Manatt, Phelps & Phillips.
Richard Hunt of the Consumer Bankers Association gives the example one member bank: It handles remittances to 147 countries, but could provide accurate information in compliance with the new rule for only 13. "Either they’re going to eliminate the [other] 134 countries and only serve those 13, or try to help out the customers transferring money over. And that’s where we need to have a give and take with the CFPB.”
For the full piece see “Banks Call CFPB Remittance Rule Unworkable” (may require subscription).
