Congressman Ellison’s Money Remittances Improvement Act Passed
Reps. Keith Ellison (D-MN), Erik Paulsen (R-MN), and Sean Duffy (R-WI) applauded the passage of the Money Remittances Improvement Act (H.R. 4386), which would make it easier for well-regulated nonbank institutions such as money service businesses to provide remittances to their customers across the globe. The bill was passed on a voice vote through the House of Representatives and now goes to the Senate.
“Passage of the Money Remittances Improvement Act is cause for celebration for all diaspora communities, including the Somali and Hmong communities I am proud to represent in Minnesota,” Rep. Ellison said. “Remittances are a lifeline for the loved ones of many Minnesotans. I will work with my colleagues in the Senate to encourage them to take up the Money Remittances Improvement Act as soon as possible.”.
“Streamlining the remittance process and eliminating regulatory barriers to sending money home is critical for many American immigrants supporting their extended families overseas,” said Rep. Paulsen. “This legislation makes it easier for these individuals to take care of their relatives, while providing the necessary safeguards to ensure their money reaches its intended destination.”.
“I want to thank Representative Ellison for his efforts on this important issue. I come from a family of 13, my wife Rachel a family of six, both spread across the United States,” said Rep. Duffy. “It is a comfort to know we can rely on each other in good and hard financial times.”.
Duffy went on to say, “Sadly the duplicative requirements under current law make it difficult for the hardworking Hmong of Wisconsin to send money to their loved ones back home when they need it most. By requiring the federal government to better communicate with state financial regulators as our bill does, families spread across the world will enjoy that peace of mind as well.”.
The Money Remittances Improvement Act would improve oversight of nonbank financial institutions like money service businesses while reducing duplication for regulators and businesses. By allowing federal regulators to utilize state exams, regulators are able to more efficiently ensure compliance with laws and regulations while also reducing costs for the regulated firms themselves.
According to Treasury Secretary Jack Lew, “The Financial Crimes Enforcement Network’s ability to formally rely on examinations conducted by state supervisory agencies will greatly improve Bank Secrecy Act compliance and oversight for nonbank financial institutions lacking a federal regulator.” The Treasury Secretary must first certify that the state’s regulatory framework is consistent with what is required at the federal level. President Obama requested this authority in three of his budget requests.
The bill is supported by The Conference of State Bank Supervisors, Money Transmitter Regulators Association, Oxfam America African Development Solutions (ADESO), the Somali American Remittances association, Tawakal Money Express, Kaah Express, Dahab-shiil, Amal USA Inc, and the Somali Action Alliance, and The Confederation of Somali Community in Minnesota support the bill.
H.R.4386 Money Remittances Improvement Act of 2014 (Introduced in House – IH)
113th CONGRESS 2d Session To allow the Secretary of the Treasury to rely on State examinations for certain financial institutions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES April 3, 2014 Mr. ELLISON (for himself, Mr. PAULSEN, Mr. DUFFY, Mr. HINOJOSA, Mrs. CAROLYN B. MALONEY of New York, Mr. PITTENGER, Mr. CRAMER, Mr. SMITH of Washington, and Mr. KING of New York) introduced the following bill; which was referred to the Committee on Financial Services A BILL To allow the Secretary of the Treasury to rely on State examinations for certain financial institutions, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘Money Remittances Improvement Act of 2014’. SEC. 2. COMPLIANCE AUTHORITY FOR CERTAIN REPORTING REQUIREMENTS. (a) Compliance With Reporting Requirements on Monetary Instrument Transactions- Section 5318(a) of title 31, United States Code, is amended– (1) in paragraph (5), by striking ‘and’ at the end; (2) by redesignating paragraph (6) as paragraph (7); and (3) by inserting after paragraph (5) the following: ‘(6) rely on examinations conducted by a State supervisory agency of a category of financial institution, if the Secretary determines that– ‘(A) the category of financial institution is required to comply with this subchapter and regulations prescribed under this subchapter; or ‘(B) the State supervisory agency examines the category of financial institution for compliance with this subchapter and regulations prescribed under this subchapter; and’. (b) Compliance With Reporting Requirements of Other Financial Institutions- Section 128 of Public Law 91-508 (12 U.S.C. 1958) is amended– (1) by striking ‘this title’ and inserting ‘this chapter and section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b)’; and (2) by inserting at the end the following: ‘The Secretary may rely on examinations conducted by a State supervisory agency of a category of financial institution, if the Secretary determines that the category of financial institution is required to comply with this chapter and section 21 of the Federal Deposit Insurance Act (and regulations prescribed under this chapter and section 21 of the Federal Deposit Insurance Act), or the State supervisory agency examines the category of financial institution for compliance with this chapter and section 21 of the Federal Deposit Insurance Act (and regulations prescribed under this chapter and section 21 of the Federal Deposit Insurance Act).’. .
(c) Consultation With State Agencies- In issuing rules to carry out section 5318(a)(6) of title 31, United States Code, and section 128 of Public Law 91-508 (12 U.S.C. 1958), the Secretary of the Treasury shall consult with State supervisory agencies.