Remittance Rule Changes Coming

On May 11, 2020, the CFPB issued a Final Rule which amends the Remittance Transfer Rule and is effective July 21st.  An Executive Summary is available here

The Final Rule will increase the threshold for determining coverage from 100 to 500.  If you sent more than 100 remittance transfers in the previous (2019) or current calendar year (2020), you are subject to the rule today.  As of July 21, 2020, you will be subject to the rule if you sent more than 500 remittance transfers in the previous or to-date in the current calendar year.

In case you have forgotten how this works, if you exceed the threshold in the prior year, you are subject to the rule for the entire next year. If you did not exceed the threshold in the prior year but exceed it at any point during the current year, you’re required to comply within six months of exceeding the threshold.

The Rule will also allow for the use of an estimated exchange rate, as well as, estimated third-party fees, when certain conditions are met.  Other technical corrections were also made.  If these changes impact you, stay tuned!  We will be bringing you things to consider in the June issue of our magazine, Banking on BCC.

Published
2020/05/12

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