The Consumer Financial Protection Bureau (CFPB) modified its final remittance rule yesterday, incorporating several changes that ABA and other trade groups requested in a January comment letter.
The CFPB extended the rule’s compliance deadline by 180 days to October 28 — twice the length of the originally proposed deadline. It also reduced institutions’ liability for losses due to sender’s errors.
In addition, the CFPB made optional in certain circumstances a sending bank’s requirement to disclose fees that a recipient’s financial institution may charge. It also made it optional for the sending bank to disclose how much tax might be deducted before the funds reach the recipient. In place of these disclosures, the CFPB required a simple disclaimer that foreign taxes and recipient bank fees may apply.