👀USA🇺🇸: CFPB considers reducing oversight of international money transfers

👀USA🇺🇸: CFPB considers reducing oversight of international money transfers

Strict regulation entails high costs that may outweigh the benefits. It seems that some regulators are beginning to acknowledge this issue.

▶️Context note: the CFPB (Consumer Financial Protection Bureau) is an independent U.S. government agency responsible for consumer protection in the financial sector. Currently, the CFPB supervises 28 non-bank providers that handle 98% of international transfers — a costly task for the agency itself, particularly after former President Trump revoked Biden-era CFPB rules and moved to dismiss 95% of its staff.

▶️In a Federal Register publication dated August 8, the CFPB indicated it may reconsider the definition of a “large payment company”, thereby reducing the scope of entities under supervision.

▶️The current definition, established in 2014, includes all non-bank entities conducting at least USD 1 million in international transfers annually. The agency is considering raising this threshold to USD 10 million.

▶️A priori, companies such as Western Union and MoneyGram qualify as “large”. However, newer fintech players such as Remitly and Euronet are increasingly relevant. At the same time, the CFPB acknowledged that it has not yet obtained accurate market-wide data.
If the U.S. regulator proceeds with easing its oversight, Europe and other jurisdictions are likely to follow.

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