CFPB Proposes New "Larger Participants" Rule for Non-Bank International Money Transmitters
The Consumer Financial Protection Bureau (CFPB) has proposed a new rule to define “larger participants” of the market for non-bank international money transfers. Comments to the proposed rule will be accepted by the CFPB for sixty (60) days after publication in the Federal Register, which has not yet occurred.
Under the proposed rule, a nonbank would be a “larger participant” in the market for international money transfers if such nonbank and its affiliates provide $1,000,000 or more in aggregate annual international money transfers.
When final and effective, a rule defining larger participants of a market for consumer financial products or services gives the CFPB direct supervisory authority over such larger participants. The CFPB has already issued final rules defining larger participants in the consumer reporting and consumer debt collection markets, and it has proposed (but not finalized) a rule defining larger participants in the student loan servicing market.