TALLAHASSEE, Fla.-- Legislators in Florida and Missouri are advancing bills that would prohibit money transfer companies from allowing “unauthorized aliens” to send cross-border remittances, potentially reshaping compliance obligations for firms such as Western Union, MoneyGram, Remitly and Wise, Payments Dive reported.
Under the proposals, companies that process prohibited transfers could face financial penalties tied to the value of the transaction.
The bills—introduced this month by Republican Reps. Berny Jacques in Florida and Ben Keathley in Missouri—would require money transmitters to verify a sender’s immigration status before initiating a foreign remittance, according to legislative filings cited by Payments Dive. Both measures remain in early committee review, though Missouri lawmakers held a hearing on Jan. 21 that included testimony from Look to the States, an organization affiliated with the State Financial Officers Foundation.
The legislation would mandate recordkeeping and quarterly reporting on verification efforts, with firms required to confirm to regulators that senders are not “unauthorized aliens,” Payments Dive reported. If a prohibited transfer occurs, companies could be assessed a penalty equal to 25% of the remitted amount, excluding fees, significantly raising the financial stakes of compliance failures.
Supporters argue the proposals align with free-market principles and taxpayer protections, but fintech advocates have pushed back. The American Fintech Council warned in letters to Florida lawmakers that the bills would improperly force private financial firms to enforce federal immigration laws.
“Licensed remittance providers already operate under some of the most rigorous state and federal oversight in the financial system,” AFC CEO Phil Goldfeder said in a Jan. 26 statement, adding that the measures could create barriers for consumers and weaken tools used to detect illicit activity, Payments Dive reported.