CFPB's First Rule will Require 7.7 Million Hours

The CFBP has estimated its first rule, the remittance proposal, will require 7.7 million employee hours of work to implement and comply with the new rule. The estimate includes a total one-time annual burden of 3.4 million employees hours and an ongoing burden of 4.3 million employee hours of work. 

A CFPB report noted the remittance proposal will impose costs as institutions update systems, revise contracts, change communication protocols and business practices in order to obtain necessary information to comply with the rule. The report also described the possibility of institutions facing “additional exchange rate risks.” 

The CFPB noted, “the costs of compliance will ultimately be shared among the consumers and businesses involved in remittance transfers.”

The CFPB remarked that due to the lack of available data “it is not possible for the Bureau to distinguish the impact of the final rule on depository institutions with $10 billion or less in total assets. ”

In May the CFPB conducted an initial regulatory flexibility analysis, concluding the proposed remittance rule “could have a significant economic impact on small entities.” Therefore, the CFPB stated it is “not certifying that the final rule will not have a significant economic impact on a substantial number of small entities.”  Read the CFPB's Final rule official interpretation.