CONGRESSWOMAN ELISE STEFANIK
On Tuesday, May 6, 2014, the House will consider H.R. 4386, the Money Remittances Improvement Act of 2014, under a suspension of the rules. H.R. 4386 was introduced on April 3, 2014 by Rep. Keith Ellison (D-MN) and was referred to the Committee on Financial Services.
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.
Money services businesses (MSBs) are nonbank financial institutions that provide money transfer and conversion services to their clients. According to the bill’s sponsor, many immigrants use MSBs to send remittances, but the lack of regulatory coordination between state and federal regulators leaves financial institutions with uncertainty regarding MSBs. The goal of H.R. 4386 is to simplify the oversight process for MSBs and other nonbank financial institutions, and to provide financial institutions that work with MSBs with the assurance that federal and state regulators are improving coordination. Enabling the Federal Crimes Enforcement Network at the Department of Treasury to rely on state agency examinations will allow coordinated information sharing, ease compliance, and provide greater certainty to financial institutions that MSBs are adequately regulated.
A CBO cost estimate is currently unavailable.
For questions or further information contact the GOP Conference at 5-5107.