JEFFERSON CITY, Mo. — Two Republican-backed bills advancing in the Missouri legislature would sharply restrict immigrants’ ability to send money abroad by requiring financial institutions to verify the sender’s immigration status before processing any international electronic transfer, the Missouri Independent reported.
According to the Missouri Independent, the measures — filed by Rep. Ben Keathley of Chesterfield in the House and Sen. Nick Schroer of Defiance in the Senate — would bar banks, credit unions, and money transmitters from completing overseas transfers for immigrants who lack permanent legal status. Keathley’s proposal has cleared a House committee hearing, while Schroer’s version has been assigned to the Senate Insurance and Banking Committee but has not yet received a public hearing, the outlet said.
The Missouri Independent noted that both bills would impose steep penalties on institutions that violate the rules: a fine equal to 25% of the transferred amount, with proceeds directed to the Missouri Disaster Fund. The Department of Commerce’s Division of Finance would also begin random quarterly compliance audits starting July 1, 2027, and institutions that fail to cooperate could lose all licenses issued by the division, the news organization reported.
Under the proposals, the Missouri Independent said, any institution handling foreign remittances would have to retain extensive records for at least three years — including transmission details, bank statements, documents used to verify legal status, and the sender’s name, date of birth, and address. Industry representatives have warned the requirements could be costly and operationally complex for financial institutions while creating new risks for consumers, the outlet added.
Privacy concerns have emerged as a central point of opposition, the Missouri Independent reported. At a House hearing, ACLU of Missouri representative Sage Coram argued the bills would force Missourians to surrender more sensitive personal data without clear standards for storage or sharing.
“This bill would require lawful Missourians to provide additional, sensitive and personal information,” Coram said, warning it could affect people sending money from abroad for family support, study, work, or charitable relief.