The Consumer Financial Protection Bureau set off a firestorm of protest over the Remittance 1073 rules issued in 2012. The rules required financial institutions to, among other things, disclose originating and receiving fees including foreign taxes and third party charges.
As a result, the bureau decided to take another look at the regulations and issued a new proposal at the end of 2012 and now are slated to go into effect 90 days after the final rules are published. One changes eases requirements to determine explicit fees on the receiving end. With these changes, the CFPB has demonstrated it is willing to listen to the industry and revisit regulations in a more common-sense manner. The proposed changes are open for comment until Jan. 30.
From Payment Law Advisor:
The Proposal would amend the 2012 Rules as follows:
- Disclosure of taxes and third-party fees.
- Disclosure of regional and local taxes assessed in foreign countries.
- Sender provides an incorrect account number to a remittance transfer provider.
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