Money Remittances Improvement Act of 2014

Floor Speech

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Ms. WATERS. 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.

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Ms. WATERS. 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.

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