[Congressional Record Volume 160, Number 67 (Tuesday, May 6, 2014)]
[House]
[Pages H3422-H3424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MONEY REMITTANCES IMPROVEMENT ACT OF 2014
Mrs. CAPITO. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 4386) to allow the Secretary of the Treasury to rely on
State examinations for certain financial institutions, and for other
purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4386
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Money Remittances
Improvement Act of 2014''.
SEC. 2. COMPLIANCE AUTHORITY FOR CERTAIN REPORTING
REQUIREMENTS.
(a) Compliance With Reporting Requirements on Monetary
Instrument Transactions.--Section 5318(a) of title 31, United
States Code, is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5) the following:
``(6) rely on examinations conducted by a State supervisory
agency of a category of financial institution, if the
Secretary determines that--
``(A) the category of financial institution is required to
comply with this subchapter and regulations prescribed under
this subchapter; or
``(B) the State supervisory agency examines the category of
financial institution for compliance with this subchapter and
regulations prescribed under this subchapter; and''.
(b) Compliance With Reporting Requirements of Other
Financial Institutions.--Section 128 of Public Law 91-508 (12
U.S.C. 1958) is amended--
(1) by striking ``this title'' and inserting ``this chapter
and section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b)''; and
(2) by inserting at the end the following: ``The Secretary
may rely on examinations conducted by a State supervisory
agency of a category of financial institution, if the
Secretary determines that the category of financial
institution is required to comply with this chapter and
section 21 of the Federal Deposit Insurance Act (and
regulations prescribed under this chapter and section 21 of
the Federal Deposit Insurance Act), or the State supervisory
agency examines the category of financial institution for
compliance
[[Page H3423]]
with this chapter and section 21 of the Federal Deposit
Insurance Act (and regulations prescribed under this chapter
and section 21 of the Federal Deposit Insurance Act).''.
(c) Consultation With State Agencies.--In issuing rules to
carry out section 5318(a)(6) of title 31, United States Code,
and section 128 of Public Law 91-508 (12 U.S.C. 1958), the
Secretary of the Treasury shall consult with State
supervisory agencies.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
West Virginia (Mrs. Capito) and the gentlewoman from California (Ms.
Waters) each will control 20 minutes.
The Chair recognizes the gentlewoman from West Virginia.
General Leave
Mrs. CAPITO. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and to submit extraneous material on H.R. 4386, the bill
currently under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from West Virginia?
There was no objection.
Mrs. CAPITO. Madam Speaker, I yield myself such time as I may
consume.
I would like to thank Mr. Ellison and Mr. Paulsen from the Financial
Services Committee for drafting the legislation before us today. I know
that many of their constituents rely on money transfer services--as
many do across this country--to remit money to family members living
abroad.
One of the current challenges facing the money service business and
the regulatory agencies that enforce the law is a lack of information-
sharing between the State and Federal entities. The end result is these
entities are examined for compliance both at the State and Federal
level.
H.R. 4386 seeks to reduce the compliance burden for these businesses
by allowing for greater information sharing between State and Federal
agencies. This legislation will make it easier for consumers seeking
money transfers to access these services.
I commend the authors of this legislation for identifying the
duplication between State and Federal compliance and putting forth a
proposal to streamline the regulatory framework for these businesses.
Consumers will have greater access to the financial services they
need and want, while at the same time making it easier for these
businesses--and the financial institutions they partner with--to make
sure they are in compliance with the law. I urge adoption of this
bipartisan legislation.
I reserve the balance of my time.
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.
{time} 1715
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.
Mrs. CAPITO. Madam Speaker, I would like to reserve the balance of my
time. I have no further speakers.
Ms. WATERS. Madam Speaker, I yield as much time as he may consume to
the gentleman from Minnesota (Mr. Ellison), the sponsor of this
legislation.
Mr. ELLISON. Madam Speaker, I would like to start out by thanking
Chairman Hensarling and Ranking Member Waters. I would also like to
thank the people who I have worked closely with on the bill, including
my own staff, who did a fine job, but also Congressman Paulsen, who has
been my friend of many years; Congressman Duffy, who is away tending to
family affairs with a newborn baby; and also Congressman Hinojosa and
many others.
The fact is that this is a commonsense good piece of legislation. It
is the kind of thing that it would be great if we worked on more of.
Both Federal and State regulators have a responsibility to provide
oversight over nonbank financial institutions like money services
businesses, jewelry merchants, and mortgage brokers. However, Federal
regulators have not been able to rely on the information that comes
from the State exams for their oversight purposes. This bill changes
that. In so doing, it reduces duplicative exams and increases
efficiency.
Madam Speaker, I urge support of this bill because it reduces
duplication in exams between State agencies and the IRS and makes the
system more efficient. One reason I introduced the bill is because I
want to see more money service businesses have access to bank accounts.
Financial institutions will feel more assured in providing bank
accounts because more nonbank financial institutions will now be
formally examined.
Groups ranging from Oxfam America to Dahabshiil agree. New Americans
know that their ability to send money back to their families in Somalia
and elsewhere is literally a matter of life and death. For many
Americans, remittances are a lifeline, providing food, shelter,
education, and economic development.
This bill is an example of how robust oversight can reduce risk,
resulting in greater beneficial activity. This bill received a great
deal of support from a wide range of supporters.
[[Page H3424]]
Again, I would like to thank my cosponsors for the bill. I would also
like to thank the Senate leads on the bill, Senators Kirk and
Klobuchar, and finally, again, Chairman Hensarling and Ranking Member
Waters for prioritizing the need to improve regulatory oversight, which
also meet humanitarian needs.
I urge my colleagues to support the Money Remittances Improvement
Act, H.R. 4386.
Mrs. CAPITO. Madam Speaker, I have no further speakers. I am prepared
to close if the gentlewoman from California is also prepared.
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.
Mrs. CAPITO. Madam Speaker, I would like to thank the sponsors of the
bill. We have done a great job of working together as two State
colleagues. I urge support of this bill as well.
I yield back the balance of my time.
Mr. DUFFY. Madam Speaker, I rise today in favor of H.R. 4386, the
Money Remittance Improvement Act.
I want to thank my colleague Rep. Ellison for his hard work and
leadership on this important issue.
Madam Speaker, I proudly come from a family of 13--10 brothers and
sisters--and my wife Rachel comes from a family of six. Both of our
families are spread across the United States and at times are spread
across the world. It has always been a comfort to know that we can rely
on each other in good and hard financial times, and that's a value
Rachel and I hope to pass on to our six--soon to be seven--children.
Sadly, duplicative requirements under current law for money service
businesses make it difficult to wire money outside the United States to
certain countries. Congress enacted laws to restrict money being sent
internationally for illegal or fraudulent activity, but they never
required the Federal government to coordinate many of those protections
with State financial regulators. In fact, current law actually
restricts these parties from sharing much of that information.
Not only does this create inefficiencies, but it creates confusion as
well. And this confusion often prevents the hardworking Hmong in my
district from sending money to their loved ones, cutting off financial
support. That is why they are supporting H.R. 4386, and I submit their
letter of support.
Madam Speaker, by requiring the Federal government to better
communicate with State financial regulators of Wisconsin and the United
States, as H.R. 4386 does, families spread across the world will enjoy
the same peace of mind that Rachel and I do.
This is a common sense piece of legislation that will not only
protect everyone from unscrupulous financial activity but also improve
the lives of all hardworking families throughout the world.
I urge all Members to support H.R. 4386.
Wausau Area Hmong
Mutual Association,
Wausau, Wisconsin, May 6, 2014.
Hon. Rep. Sean Duffy,
7th Congressional District of Wisconsin, Washington, DC.
Dear Rep. Duffy: Thank you for your hard work and for being
a cosponsor of the proposed legislation ``The Money
Remittances Improvement Act of 2013, H.R. 1694/S. 1840.''
This proposed bill is what many Hmong families in Central
Wisconsin need to help their families and relatives in Laos.
As you are aware, Central Wisconsin is home to nearly 7,000
Hmong American residents, making the area the second largest
Hmong community in the state. Wisconsin has the third largest
Hmong population in the nation following California and
Minnesota. Most Hmong American families in the U.S. still
have close family members or relatives whom they left behind
in Laos. These Hmong families are living in very poor
conditions with no support from their government and are
dependent on their families in the U.S. for financial
assistance.
Each year, hundreds of Hmong individuals and families in
Central Wisconsin would send monies to help their poor
relatives in Laos. The Money Remittances Improvement Act, no
doubt, would make it easier for Hmong Americans to send
financial support to help their poverty stricken family
members and relatives.
We support The Money Remittances Improvement Act and urge
the House of Representatives to pass this bill as soon as
possible. We thank you for your diligent work on behalf of
the citizens of Central and Northern Wisconsin.
Sincerely,
Peter Yang,
Executive Director, Wausau Area
Hmong Mutual Association, Inc.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from West Virginia (Mrs. Capito) that the House suspend the
rules and pass the bill, H.R. 4386.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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