FTA Comment on Defining Larger Participants of the International Money Transfer Market
The Financial Technology Association (FTA) submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) on its Advance Notice of Proposed Rulemaking regarding the larger participant rule for the international money transfer market.
FTA urged the Bureau to reevaluate whether a larger participant market is needed for the supervision of remittance providers and to consider rescinding its supervisory authority over remittance companies under this framework. Remittance providers are already subject to rigorous state licensing, vetting, and oversight, as well as federal enforcement authority.
The letter highlights that federal supervision imposes costly and duplicative regulatory burdens, diverting resources away from serving customers and innovating new products. FTA noted that regulatory burdens should be imposed only when necessary and directly tied to identifiable risks, and that the international money transfer market does not present the type of systemic risks that justify additional oversight.
FTA Comment on Defining Larger Participants of the International Money Transfer Market
The Financial Technology Association (FTA) submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) on its Advance Notice of Proposed Rulemaking regarding the larger participant rule for the international money transfer market.
FTA urged the Bureau to reevaluate whether a larger participant market is needed for the supervision of remittance providers and to consider rescinding its supervisory authority over remittance companies under this framework. Remittance providers are already subject to rigorous state licensing, vetting, and oversight, as well as federal enforcement authority.
The letter highlights that federal supervision imposes costly and duplicative regulatory burdens, diverting resources away from serving customers and innovating new products. FTA noted that regulatory burdens should be imposed only when necessary and directly tied to identifiable risks, and that the international money transfer market does not present the type of systemic risks that justify additional oversight.
Read the full letter here.