Rep. Ellison Statement on the Signing of the Money Remittances Improvement Act Into Law

Press Release

Rep. Keith Ellison (D-MN) released the following statement today after President Obama signed the Money Remittances Improvement Act (H.R. 4386) into law. The law improves regulation for nonbank financial institutions such as money service businesses. By allowing federal regulators to rely on approved state exams, the law will reduce the regulatory burden on money services businesses while also giving financial institutions more comfort that institutions are well regulated.

"This is a great day for diaspora communities around the country, including the Somali and Hmong communities I am proud to represent," Rep. Ellison said. "Remittances are a lifeline for the loved ones of many Minnesotans. With the signing of this new law, Congress and the President took an important first step to improve the processes by which families and businesses send money home, making them simpler and easier to follow. I applaud the President for signing this bill into law."

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 law 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.

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