JEFFERSON CITY, Mo. — Missouri and Florida lawmakers are advancing proposals that would bar money-transfer companies from sending certain international remittances unless the sender can prove they are lawfully in the United States, part of a broader push in some Republican-led states to use financial licensing rules to tighten immigration enforcement.
In Missouri, Senate Bill 1124 would prohibit licensed money transmitters from initiating a “foreign remittance transfer” unless the business has verified the sender “is not an unauthorized alien,” according to the bill text and summary posted by the Missouri Senate.
A related Missouri House proposal, House Bill 2412, describes similar restrictions and includes civil penalties tied to the size of the transaction, according to the bill and legislative fiscal materials.
In Florida, lawmakers have filed Senate Bill 1380 and House Bill 1307 — part of a wider immigration package — that would restrict “foreign remittance transfers” by licensed money services businesses unless they verify the sender is not an “unauthorized alien,” with enforcement handled through Florida’s financial regulators, according to the Florida Senate.
The Florida proposal was filed by Sen. Jonathan Martin and Rep. Berny Jacques.
Some Opposition
The legislation has drawn opposition from parts of the payments and fintech industry, which argue the bills would shift immigration-status checks onto private companies and could block lawful customers lacking required documentation, Financial Tech reported The Financial Technology Association said it opposes what it described as “concerning” state remittance proposals, including measures in Missouri and Florida.
The debate is also being watched closely by national payments firms and compliance providers because the proposals hinge on new verification requirements, recordkeeping and complaint-driven enforcement, according to a recent Payments Dive report on the two states’ bills.
A Way to Curb Illegal Immigration
In Missouri, the GOP-backed push has been framed by supporters as a way to curb illegal immigration by limiting the ability of people in the country unlawfully to send money abroad. A St. Louis-area television report by KDSK in December said the proposal would require banks and wire services to verify a sender’s legal status before transferring funds internationally.
Under Missouri’s Senate bill, regulators could request records showing how a licensee verified the sender’s status, and individuals could file complaints if they believe a company is not complying, according to the bill language, according to the Missouri Senate.
The Florida Senate said its bill text defines “foreign remittance transfer” by referencing the federal Electronic Fund Transfer Act’s remittance provisions and directs state regulators to adopt rules on acceptable documentation, according to the filed measure.
What Supporters Say
Supporters in both states say the proposals build on existing state oversight of money transmitters and are aimed at companies facilitating cross-border transfers. Opponents counter that the measures could push more transfers into unregulated channels while increasing costs and delays for consumers, Payments Dive reported.
Neither proposal would directly prohibit all international remittances, but both would condition transfers on identity and status verification requirements enforced through state licensing systems, the analysis shows.
