CFPB Rule Defines "Larger Participants" In International Money Transfer Market

CFPB  •  Money Transmission

On September 23, the CFPB issued its final rule amending the regulation defining larger participants of certain consumer financial product and service markets specifically to add a definition for larger participants in the market for international money transfers. The rule defines such “larger participants” as those entities that have at least one million aggregate annual international money transfers.  The CFPB issued the proposed version of this definition in January 2014.  Pursuant to 12 C.F.R. § 1090.103, a person can dispute whether it qualifies as a larger participant in the international money transfer market. 

The CFPB has the authority to supervise nonbank ‘‘larger participant[s]’’ of markets for certain consumer financial products or services, and has previously issued rules defining larger participants of markets for consumer reporting, consumer debt collection, and student loan servicing.  This final rule identifies a market for international money transfers and brings ‘‘larger participants’’ of this market within the CFPB’s enforcement power. 

The final rule takes effect on December 1, 2014.

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