CFPB International Transfer Rule Invites Fraud, Groups Say

Law360, New York (October 23, 2012, 1:49 PM EDT) -- New Consumer Financial Protection Bureau provisions mandated by the Dodd-Frank Act that require banks to reimburse customers who provide incorrect information on international wire transfers could open the door to fraudsters, several industry groups said in a letter released Tuesday.

In its remittance transfer rule, finalized in August, the CFPB said that banks would be forced to return the principal amount of international wire transfers that are sent to an incorrect account, even if the customer provided an incorrect destination account number. That requirement provides a...
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