NAFCU responds to CFPB remittance transfer rule
The National Association of Federal Credit Unions issued the following statement in response to the Consumer Financial Protection Bureau’s announcement Friday that it finalized its remittance transfer rule that extends a temporary reporting exception to federally insured credit unions and banks on certain international remittance transfers for another five years, to July 21, 2020.
NAFCU welcomes the extension and our members are happy to see the Bureau explicitly specify that U.S. military installations located abroad are states for the purposes of the remittance rule.” said NAFCU Director of Regulatory Affairs Michael Coleman. “NAFCU and our members, however, remain concerned about the overall rule and the incredible burden it places on any credit union facilitating more than 100 remittances yearly for its members. As it stands, this rule is pushing credit unions out of the market.
In the final rule, the CFPB establishes that transfers to individuals and accounts located on U.S. military installations located abroad, as well as transfers from individuals and their accounts located on U.S. military installations abroad to designated recipients in the United States will be excluded from the remittance rule’s application.