The Dodd–Frank Act and Remittance 1073: Why taking the road less travelled creating new regulation is fraught with danger

Abstract

Establishing effective and balanced payment regulation is a difficult and slow process, and new regulations, rules or revisions follow a well-worn but cumbersome path. However, an inclusive, fast and effective method has yet to emerge. The high-level intent and purpose of Remittance 1073’s inclusion in the Dodd-Frank Act was meant to remedy remittance problems experienced by foreign nationals working in the USA, but the Bureau of Consumer Financial Protection (CFPB) significantly expanded the scope of Remittance 1073 to regulate all remittance transfers initiated by all consumers sending money internationally. The requirements ask the impossible of FIs, and all but a few have the budgets and sophistication to attempt 1073 compliance. The CFPB must establish, or participate in, open discussion with the financial community in the hope that it will attend, listen, ask questions and learn.