The Consumer Financial Protection Bureau's proposed remittance regulations could force credit unions to stop providing the service, said CUNA and NAFCU in letters submitted to CFPB Executive Secretary Monica Jackson.
The central issue is credit unions' use of so-called "open networks" like international wires and ACH, because the cooperatives don't have easy access to all the information required to meet new disclosure requirements, wrote NAFCU President/CEO Fred Becker.
As users of open networks, credit unions lack control over all of the participants that may collect funds as the remittance makes it way from the U.S. to its recipient. A number of principal providers may access the system, and national laws, individual contracts, and the rules of various messaging, settlement, or payment systems may constrain certain parts of transfers sent through an open network.
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