Money Remittances Improvement Act of 2014

Money Remittances Improvement Act of 2014
Great Seal of the United States
Full title To allow the Secretary of the Treasury to rely on State examinations for certain financial institutions, and for other purposes.
Introduced in 113th United States Congress
Introduced on April 3, 2014
Sponsored by Rep. Keith Ellison (D, MN-5)
Number of Co-Sponsors 8
Citations
Public Law Pub.L. 113–156
Effects and Codifications
U.S.C. section(s) affected 31 U.S.C. § 5318, 12 U.S.C. § 1958, 12 U.S.C. § 1829b
Agencies affected United States Department of Transportation, United States Department of the Treasury
Legislative history

The Money Remittances Improvement Act of 2014 (H.R. 4386; Pub.L. 113–156) is a bill that passed in the United States House of Representatives during the 113th United States Congress. The bill would "allow the Treasury secretary to use state examinations for certain financial institutions instead of federal reporting requirements."[1] The bill would make it easier for nonbank financial institutions such as money service businesses to provide remittance payments internationally.[2]

Background

Main article: Remittance

A remittance is a transfer of money by a foreign worker to an individual in his or her home country. Money sent home by migrants competes with international aid as some of the largest financial inflows to developing countries. In 2012, according to the World Bank Report, $401 billion went to developing countries (a new record) with overall global remittances at $514 billion.[3]

Remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of less prosperous people (though generally not the poorest of the poor). According to World Bank estimates, remittances totaled US$414 billion in 2009, of which US$316 billion went to developing countries that involved 192 million migrant workers.[4] For some individual recipient countries, remittances can be as high as a third of their GDP.[4] As remittance receivers often have a higher propensity to own a bank account, remittances promote access to financial services for the sender and recipient, an essential aspect of leveraging remittances to promote economic development. According to some social scientists remittances have social significance that extends well beyond the mere financial dimensions.[5]

Provisions of the bill

According to a summary written by the House Republicans, "H.R. 4386 authorizes the Secretary of the Treasury, with respect to complying with monetary instrument transaction reporting requirements, to rely upon examinations conducted by the relevant state supervisory agency if: 1) the category of financial institution is required by state law to comply with federal requirements; or 2) the state supervisory agency is authorized to ensure that the financial institution complies with federal requirements."[6]

Procedural history

The Money Remittances Improvement Act of 2014 was introduced into the United States House of Representatives on April 3, 2014 by Rep. Keith Ellison (D, MN-5).[7] It was referred to the United States House Committee on Financial Services.[7] The bill was passed in a voice vote on May 6, 2014.[1] The United States Senate voted with unanimous consent to pass the bill on August 1, 2014 and President Barack Obama signed the bill into law on August 8, 2014.

Debate and discussion

On May 6, 2014, Rep. Ellison said that "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."[8]

Rep. Erik Paulsen (R-MN), another supporter of the bill, argued that the bill would make it easier for American immigrants "supporting their extended families overseas" to help their relatives, while still "providing the necessary safeguards to ensure their money reaches its intended destination."[8] The bill would help these people by "streamlining the remittance process and eliminating regulatory barriers to sending money home."[8]

The list of organizations who support the bill include 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.[8]

See also

References

  1. 1 2 Marcos, Cristina (6 May 2014). "House passes measure to expand credit unions". The Hill. Retrieved 7 May 2014.
  2. ↑ Radio, Dalsan (7 May 2014). "Somalia: Congressman Ellison's Money Remittances Improvement Act Passed". All Africa. Retrieved 8 May 2014.
  3. ↑ "RI ranks third on SE Asia remittance list". April 29, 2013.
  4. 1 2 The World Bank: Remittance Market Outlook
  5. ↑ "Migrating - Remitting -'Building'- Dwelling: House-making as proxy presence in postsocialist Albania.". 2013.
  6. ↑ "Legislative Digest - H.R. 4386". House Republican Conference. Retrieved 8 May 2014.
  7. 1 2 "H.R. 4386 - All Actions". United States Congress. Retrieved 4 May 2014.
  8. 1 2 3 4 "Ellison, Paulsen, Duffy Applaud Passage of Money Remittances Improvement Act". House Office of Keith Ellison. 6 May 2014. Retrieved 8 May 2014.
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