U.S. MSB Daily News
Deck: Missouri’s treasurer and Republican lawmakers want remittance providers to verify a sender’s legal work status before sending money overseas — or face penalties tied to the transfer amount.
USMSB.com — Missouri’s top money watchdog is pushing a plan that could put money transmitters and wire services on the hook for checking immigration-related work authorization before sending cash abroad.
State Treasurer Vivek Malek stood with Lt. Gov. David Wasinger and Republican lawmakers Tuesday to pitch House Bill 2412 and a matching Senate measure that would clamp down on foreign remittances tied to people without legal status, according to multiple reports.
Malek called remittances a “major blind spot” and framed the push as a rule-of-law issue.
“This issue is not theoretical,” Malek said at the press event, describing it as “very deeply personal” as a naturalized U.S. citizen who said he came to Missouri legally and waited years to become a citizen.
The proposal, in plain English
If enacted, the bills would target foreign remittance transfers initiated through licensed money service businesses operating in Missouri.
Key pieces, as described by sponsors and coverage:
- Verification required: Remittance companies would have to verify the sender is authorized to work in the U.S. before initiating an overseas transfer.
- Self-reporting: Companies would be required to verify status and report compliance.
- Penalties: Businesses that fail to verify could face fines equal to 25% of the transfer amount.
- Records: Financial institutions would need to keep records for five years, with additional penalties for false filings.
Supporters argued the scale of remittances is massive — citing estimates that more than $200 billion is sent abroad from the U.S. each year, including $52.6 billion to Mexico in 2021 — and said unverified transfers create incentives for unlawful work.
“Remittances are not just private family transactions,” Malek said. “They are a powerful economic incentive tied directly to illegal immigration.”
“We wanna drive these illegal immigrants out of here”
Wasinger was blunter.
“We wanna drive these illegal immigrants out of here,” he said, arguing illegal immigration strains schools, hospitals and law enforcement resources.
Backers acknowledged immigration is mainly a federal matter — but argued Missouri can still act.
Critics: enforcement questions, federal conflict concerns
Critics and legal observers warned the plan could collide with federal authority over banking and immigration — and that choking off formal remittances could push money into cash-based or unregulated alternatives.
Immigration attorney David Cox also questioned how enforcement would work in practice, suggesting people could simply ask someone else with documentation to send the money on their behalf.
Cox said remittances are “the lifeblood” for many migrant families supporting relatives back home.
What it means for MSBs
For money transmitters, agents, and compliance teams, the proposal is less about politics — and more about process.
If enacted, Missouri-licensed providers could be looking at:
- Front-line verification workflows before initiating foreign transfers (and the training to support them)
- Document handling and retention controls to back up compliance reporting
- Agent oversight (making sure third-party locations follow the same checks)
- Customer friction risk at the counter, plus complaint and reputational risk if customers feel unfairly flagged
- Penalty exposure tied directly to transaction size (25% of the transfer amount is not small)
Bottom line: this would turn “know your customer” into a much more sensitive—and potentially contentious—gatekeeping step for outbound remittances.
What’s next
Missouri’s legislative session begins Jan. 7, and the plan is expected to draw heat from banks, business groups, and immigration advocates as lawmakers debate whether the state can regulate cross-border money movement in this way.
Separately, U.S. Sen. Eric Schmitt (R–Mo.) has introduced a federal remittance measure — the REMIT Act — which would raise taxes on remittances, and he praised Missouri’s latest proposal in a statement.
Source: Reporting based on Missouri coverage published Dec. 16, 2025, including remarks attributed to Treasurer Vivek Malek, Lt. Gov. David Wasinger, and bill sponsors in HB 2412 and the companion Senate proposal.
U.S. MSB Daily News
Industry News • Regulatory Analysis • Learning Center
Leave a Reply