Money Remittances Improvement Act of 2013

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in support of H.R. 4386, the Money Remittances Improvement Act, offered by the distinguished gentleman from Minnesota (Mr. Ellison), a member of the House Financial Services Committee and a cochair of the Congressional Progressive Caucus.

Representative Ellison has worked diligently to get this important bill to the floor for some time, and I thank him for that. I am also grateful to Financial Services Committee Chairman Jeb Hensarling for his leadership in bringing this bill to the floor today.

H.R. 4386 is a commonsense measure that will strengthen Bank Secrecy Act examinations of the nonbank financial institutions that lack a Federal regulator by permitting the Financial Crimes Enforcement Network, known as FinCEN, to rely on examinations already conducted by State supervisory agencies where they meet Federal standards.

This straightforward change will make better use of limited State and Federal resources and will ensure that the wide range of nonbank financial institutions, currently subject to examination by the Internal Revenue Service as delegated by FinCEN, will be subject to more consistent and effective oversight.

In addition to furthering our national security interests, the enhanced regulatory coordination and robust oversight of nonbank antimoney-laundering compliance provided for in this bill will make it easier for lawful and well-regulated nonbank institutions, such as money service businesses, to provide remittances and other essential financial services.

Access to remittances is particularly important in States like Minnesota, Ohio, Washington, and California, which are home to diaspora communities from the east African nations of Kenya, Ethiopia, Djibouti, Sudan, Somalia, and elsewhere.

For family members living in fragile states, remittances sent from the United States often provide an essential lifeline during difficult periods of drought famine, conflict, and economic disruption.

In an environment where banks and credit unions are understandably eager to reduce risks of all kinds, this is exactly the type of legislation we need. By strengthening oversight of nonbank money transmitters and other nonbank actors, this bill will help increase the confidence banks and credit unions rely on in determining whether to provide the account services that nonbank institutions need to stay in business.

It will also do so without diluting the important risk-based due diligence requirement banks and credit unions are subject to under the Bank Secrecy Act.

Appropriately, current law requires that banks and credit unions take steps to ensure that their nonbank customers meet core Bank Secrecy Act compliance obligations, including recordkeeping and reporting requirements, ongoing monitoring for suspicious activity, and training for employees to ensure they are familiar with their obligations under the law.

While banks, credit unions, and their executives must be expected to meet obligations under the law, we must also do more to provide them with the tools necessary to access compliance risk, distinguish between good and bad actors. To strengthen our national security, promote a more sound financial system, save taxpayers money, and provide fairness and relief to immigrant communities across this Nation and their families around the globe, I urge all Members of the House to vote in favor of this bill.

I reserve the balance of my time.

Madam Speaker, I yield as much time as he may consume to the gentleman from Minnesota (Mr. Ellison), the sponsor of this legislation.

Madam Speaker, I have no further requests for time. I would like to thank all of those who have worked on this legislation.

This is a fine example of how you take a rather difficult and complicated problem and work through ways by which you can ensure security and that lawful actions are continued in order to make sure that the banking laws are being recognized and being honored and still do something for those people who are dependent on these remittances.

I yield back the balance of my time and ask all of my colleagues for their support on this bill.

Madam Speaker, I rise today in favor of H.R. 4386, the Money Remittance Improvement Act.

I want to thank my colleague Rep. Ellison for his hard work and leadership on this important issue.

Madam Speaker, I proudly come from a family of 13--10 brothers and sisters--and my wife Rachel comes from a family of six. Both of our families are spread across the United States and at times are spread across the world. It has always been a comfort to know that we can rely on each other in good and hard financial times, and that's a value Rachel and I hope to pass on to our six--soon to be seven--children.

Sadly, duplicative requirements under current law for money service businesses make it difficult to wire money outside the United States to certain countries. Congress enacted laws to restrict money being sent internationally for illegal or fraudulent activity, but they never required the Federal government to coordinate many of those protections with State financial regulators. In fact, current law actually restricts these parties from sharing much of that information.

Not only does this create inefficiencies, but it creates confusion as well. And this confusion often prevents the hardworking Hmong in my district from sending money to their loved ones, cutting off financial support. That is why they are supporting H.R. 4386, and I submit their letter of support.

Madam Speaker, by requiring the Federal government to better communicate with State financial regulators of Wisconsin and the United States, as H.R. 4386 does, families spread across the world will enjoy the same peace of mind that Rachel and I do.

This is a common sense piece of legislation that will not only protect everyone from unscrupulous financial activity but also improve the lives of all hardworking families throughout the world.

I urge all Members to support H.R. 4386.

Wausau Area Hmong

Mutual Association,

Wausau, Wisconsin, May 6, 2014.

Hon. Rep. Sean Duffy,

7th Congressional District of Wisconsin, Washington, DC.

Dear Rep. Duffy: Thank you for your hard work and for being

a cosponsor of the proposed legislation ``The Money

Remittances Improvement Act of 2013, H.R. 1694/S. 1840.''

This proposed bill is what many Hmong families in Central

Wisconsin need to help their families and relatives in Laos.

As you are aware, Central Wisconsin is home to nearly 7,000

Hmong American residents, making the area the second largest

Hmong community in the state. Wisconsin has the third largest

Hmong population in the nation following California and

Minnesota. Most Hmong American families in the U.S. still

have close family members or relatives whom they left behind

in Laos. These Hmong families are living in very poor

conditions with no support from their government and are

dependent on their families in the U.S. for financial

assistance.

Each year, hundreds of Hmong individuals and families in

Central Wisconsin would send monies to help their poor

relatives in Laos. The Money Remittances Improvement Act, no

doubt, would make it easier for Hmong Americans to send

financial support to help their poverty stricken family

members and relatives.

We support The Money Remittances Improvement Act and urge

the House of Representatives to pass this bill as soon as

possible. We thank you for your diligent work on behalf of

the citizens of Central and Northern Wisconsin.

Sincerely,

Peter Yang,

Executive Director, Wausau Area

Hmong Mutual Association, Inc.

Madam Speaker, I would like to start out by thanking Chairman Hensarling and Ranking Member Waters. I would also like to thank the people who I have worked closely with on the bill, including my own staff, who did a fine job, but also Congressman Paulsen, who has been my friend of many years; Congressman Duffy, who is away tending to family affairs with a newborn baby; and also Congressman Hinojosa and many others.

The fact is that this is a commonsense good piece of legislation. It is the kind of thing that it would be great if we worked on more of. Both Federal and State regulators have a responsibility to provide oversight over nonbank financial institutions like money services businesses, jewelry merchants, and mortgage brokers. However, Federal regulators have not been able to rely on the information that comes from the State exams for their oversight purposes. This bill changes that. In so doing, it reduces duplicative exams and increases efficiency.

Madam Speaker, I urge support of this bill because it reduces duplication in exams between State agencies and the IRS and makes the system more efficient. One reason I introduced the bill is because I want to see more money service businesses have access to bank accounts. Financial institutions will feel more assured in providing bank accounts because more nonbank financial institutions will now be formally examined.

Groups ranging from Oxfam America to Dahabshiil agree. New Americans know that their ability to send money back to their families in Somalia and elsewhere is literally a matter of life and death. For many Americans, remittances are a lifeline, providing food, shelter, education, and economic development.

This bill is an example of how robust oversight can reduce risk, resulting in greater beneficial activity. This bill received a great deal of support from a wide range of supporters.

Again, I would like to thank my cosponsors for the bill. I would also like to thank the Senate leads on the bill, Senators Kirk and Klobuchar, and finally, again, Chairman Hensarling and Ranking Member Waters for prioritizing the need to improve regulatory oversight, which also meet humanitarian needs.

I urge my colleagues to support the Money Remittances Improvement Act, H.R. 4386.

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 4386) to allow the Secretary of the Treasury to rely on State examinations for certain financial institutions, and for other purposes.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and to submit extraneous material on H.R. 4386, the bill currently under consideration.

Madam Speaker, I yield myself such time as I may consume.

I would like to thank Mr. Ellison and Mr. Paulsen from the Financial Services Committee for drafting the legislation before us today. I know that many of their constituents rely on money transfer services--as many do across this country--to remit money to family members living abroad.

One of the current challenges facing the money service business and the regulatory agencies that enforce the law is a lack of information- sharing between the State and Federal entities. The end result is these entities are examined for compliance both at the State and Federal level.

H.R. 4386 seeks to reduce the compliance burden for these businesses by allowing for greater information sharing between State and Federal agencies. This legislation will make it easier for consumers seeking money transfers to access these services.

I commend the authors of this legislation for identifying the duplication between State and Federal compliance and putting forth a proposal to streamline the regulatory framework for these businesses.

Consumers will have greater access to the financial services they need and want, while at the same time making it easier for these businesses--and the financial institutions they partner with--to make sure they are in compliance with the law. I urge adoption of this bipartisan legislation.

I reserve the balance of my time.

Madam Speaker, I would like to reserve the balance of my time. I have no further speakers.

Madam Speaker, I have no further speakers. I am prepared to close if the gentlewoman from California is also prepared.

Madam Speaker, I would like to thank the sponsors of the bill. We have done a great job of working together as two State colleagues. I urge support of this bill as well.

I yield back the balance of my time.