Rep. Keith Ellison (D-MN) applauded the Senate's 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 by a voice vote and now goes to the President's desk to be signed into law.
"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. This bill will simplify the process by which families and businesses send money home. I look forward to the President signing this bill into law."
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.