The Consumer Financial Protection Bureau's proposed remittance regulations could force credit unions to stopproviding the service to members, CUNA and NAFCU said in commentletters submitted this week to the CFPB.

The central issue is credit unions' use of so-called “opennetworks” like international wires and ACH, compared toorganizations that specialize in remittances and use their ownnetworks. Credit unions don't have easy access through opennetworks to all the information required to meet the regulations,wrote NAFCU President/CEO Fred Becker.

Proposed disclosures include an estimate of exchange rates andfees when a pre-scheduled transaction is originally authorized, asecond receipt 10 days before the transaction will take place, anda third and final receipt when the transfer is received.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.