The Clearing House Association joined the Consumer Bankers Association and the Bank Policy Institute (collectively, the Associations) in filing a letter responding to the CFPB’s Advance Notice of Proposed Rulemaking (ANPR) regarding the definition of “larger participants” in the international money transfer market.  The ANPR sought input on whether to raise the threshold for defining nonbank larger participants in that market, which would result in the CFPB examining fewer nonbank providers. 

The Associations urged the CFPB to continue supervising nonbank providers responsible for a substantial majority of transactions in the market for international money transfers.  They emphasized that the Dodd-Frank Act established the CFPB to apply consumer protection laws consistently across banks and nonbanks, ensuring fairness, transparency, and competition in financial services. The Associations further explained that consumers increasingly rely on nonbank providers for financial services, particularly for international remittances.  For this reason, effective supervision of nonbank remittance transfer providers is essential to preventing regulatory arbitrage, fostering healthy competition, and protecting consumers. To read the full letter click here.