John Zasada, Compliance Consulting Director, Financial Institutions Group

On April 10, 2020, in light of the COVID-19 pandemic, the Consumer Financial Protection Bureau (CFPB) issued a Policy Statement announcing it is extending the time period for remittance transfer providers who provide estimated exchange rates and certain third-party fees, instead of exact amounts. Regulation E requires remittance transfer providers to disclose certain information to consumers who send remittance transfers, including information related to the exact cost of a remittance transfer. There is a temporary exception to this requirement allowing certain financial institutions to disclose estimates to consumers of the exchange rate and covered third-party fees instead of exact amounts. This temporary exception is due to expire on July 21, 2020. The CFPB’s Policy Statement announced it is extending this exception for remittances that occur on or after July 21, 2020, and before Jan. 1, 2021.