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ABA: The American Bankers Association
Compliance News

CFPB Clarifies Remittance Rule Disclosures Under Coronavirus Shutdowns

The Consumer Financial Protection Bureau issued a compliance aid to address a remittance transfer provider’s responsibility when a remittance fails to arrive by the disclosed time due to a coronavirus-related shutdown in the recipient country. The bureau said that the provider’s failure to deliver funds by the disclosed date would not be considered an “error” under the remittance rule if it could not have reasonably anticipated the closure.

For example, the bureau said, if after a transfer is sent, the government of the recipient country imposes a “stay at home” order deeming remittance transfers non-essential and the recipient does not receive funds by the disclosed deadline, it is not an error; however, should the same stay-at-home order have been announced prior to the transfer being initiated, it would be. Read the compliance aid.