[Congressional Record (Bound Edition), Volume 160 (2014), Part 5]
[House]
[Pages 6894-6896]
[From the U.S. 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''.

[[Page 6895]]

       (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 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.

[[Page 6896]]

  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.
  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 meets 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 Remittances 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 commonsense 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.

                          ____________________