Status verification for remittance transfers

Section 919 of the Electronic Fund Transfer Act (relating to remittance transfers) (15 U.S.C. 1693o–1) is amended—(1)by redesignating subsection (g) as subsection (h); and(2)by inserting after subsection (f) the following:

(g)

Status verification of sender

(1)

Request for proof of status

(A)

In general

Each remittance transfer provider shall request from each sender of a remittance transfer, the recipient of which is located in any country other than the United States, proof of the status of that sender under the immigration laws, prior to the initiation of the remittance transfer.(B)

Acceptable documentation

Acceptable documentation of the status of the sender under this paragraph—(i)shall be, in any State that requires proof of legal residence—(I)a State-issued driver's license or Federal passport; or(II)the same documentation as required by the State for proof of identity for the issuance of a driver’s license, or as required for a passport;(ii)shall be, in any State that does not require proof of legal residence, such documentation as the Bureau shall require, by rule; and(iii)does not include any matricula consular card.(2)

Fine for noncompliance

Each remittance transfer provider shall impose on any sender who is unable to provide the proof of status requested under paragraph (1) at the time of transfer, a fine equal to 7 percent of the United States dollar amount to be transferred (excluding any fees or other charges imposed by the remittance transfer provider).(3)

Submission of fines to Bureau

All fines imposed and collected by a remittance transfer provider under paragraph (2) shall be submitted to the Bureau, in such form and in such manner as the Bureau shall establish, by rule.(4)

Administrative and enforcement costs

The Bureau shall use fines submitted under paragraph (3) to pay the administrative and enforcement costs to the Bureau in carrying out this subsection.(5)

Use of fines for border protection

Amounts from the collection of fines under this subsection that remain available after the payment of expenses described in paragraph (4), shall be transferred by the Bureau to the Treasury, to be used to pay expenses relating to United States Customs and Border Protection for border security fencing, infrastructure, and technology.(6)

Definition relating to immigration status

In this subsection, the term immigration laws has the same meaning as in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)).

Study and report regarding remittance transfer processing fines and identification program

(a)

Study

The Comptroller General of the United States shall conduct a study to determine the effects of the enactment of section 919(g) of the Electronic Fund Transfer Act, as amended by this Act.(b)

Report

Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs and the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the results of the study conducted under paragraph (1) that includes—(1)an analysis of the costs and benefits of complying with section 919(g) of the Electronic Fund Transfer Act, as amended by this Act; and(2)recommendations about whether the fines imposed under that section 919(g) should be extended or increased.