Ellison Reintroduces Bipartisan Legislation To Help Somalis In Minnesota Send Money Home

Press Release

Rep. Keith Ellison (D-MN), Rep. Erik Paulsen (R-MN), and Rep. Sean Duffy (R-WI) today reintroduced the bipartisan Money Remittances Improvement Act of 2013(H.R. 1694), which helps address the difficulties Somali-Americans and others have sending money to loved ones in their countries of origin. The bill simplifies oversight for money services businesses (MSBs) and other nonbank financial institutions, and provides financial institutions that collaborate with MSBs more assurance that the federal and state regulators are coordinating.

"For years, families in Minnesota have had trouble sending much-needed assistance to their relatives outside the country," Rep. Ellison said. "After suffering from drought and famine, these remittances are often the difference between life and death for Somalis. This bill would make it easier for Minnesota families to send money home, and I am proud to work with members of both parties to get it passed."

The recent decision by U.S. Bank to open an account allowing Somali-Americans to send money to their loved ones in Somalia has brought renewed attention to the problem facing thousands of Minnesotans.

Under current law, MSBs must comply with rules of state regulators and federal bureaus like the Internal Revenue Service (IRS) and Financial Crimes Enforcement Network (FinCEN) at the U.S. Department of Treasury. The lack of coordination between federal and state governments can give pause to banks who wish to provide financial services to refugees and immigrants from troubled nations. This common-sense legislation promotes broader and more effective use of the dual federal and state oversight structure, and will result in better coordination between Treasury and the states and a more robust examination process.

The bill helps avoid duplicative state and federal oversight efforts with respect to MSBs by:

* Allow FinCEN and the IRS to rely on examinations conducted by a state supervisory agency of regulated financial institutions, if the laws of the state require the financial institution to comply with FinCEN's regulations.

* Increase information sharing between FinCEN and counterpart anti-money laundering/counter-terrorist financing regulators.

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