Senate Unanimously Passes Bill Helping Financial Institutions Serving Immigrants

The House Business and Consumer Protection Committee held a public hearing on Joint Senate Memorial 8004, which discusses “risk reduction” by financial institutions. The bill passed the Senate 47-0 and needs to pass the House in order to go to the governor’s office for a chance to be signed into law.

The bill, if passed, would formally ask the U.S. Congress to implement strategies and recommendations that allow banks to better serve immigrants and make it harder for banks to avoid helping immigrants send funds abroad.

SJM- 2021-22 Addressing “risk reduction” by financial institutions

Invoice Information
Invoice Information Page (link)

Regarding: Original invoice (pdf)
Sponsors: Senators Hasegawa and Saldaña
Effective date: The bill comes into force 90 days after the adjournment of the session in which the bill is
pass.
Status:
January 10 By resolution, reintroduced and maintained in its current state.
January 28 Third reading by the Rules Committee.

February 2 Third reading, passed; yes, 47; no, 0; absent, 0; excused, 2 (Senator Brown, Senator Schoesler).

The bill is returned to the House for consideration.

In the House

February 7 First reading, referred to Consumer Protection & Business.

February 16 Public hearing in the House Committee on Consumer and Business Protection at 8:00 a.m.

February 17 Executive action taken in the House Committee on Consumer and Business Protection at 10:00 a.m.

Committee documents

Senate Bill Report (Orig.)
Analysis of internal invoices 2021
House bill report
Senate bill report
Analysis of internal invoices 2022

The Analysis of the Bill and the Report of the Bill are prepared by non-partisan legislative staff for use by Members in their deliberations. This analysis does not form part of the legislation, nor does it constitute a statement of legislative intent.

Brief summary of the bill

Analysis of the internal bill Brief summary of the joint brief

  • Calls for federal legislation that addresses steps taken by financial institutions to terminate or restrict business relationships with certain customers.

Report on Senate Bill Brief Summary of Joint Submission

  • Directs Congress to pass legislation that will provide transparency to customers or former customers of financial institutions who need to send funds to families in other countries by wire transfer.

“Derisk”

The term “risk mitigation” refers to the actions taken by a financial institution to terminate, not initiate, or restrict a business relationship with a customer or class of customers rather than managing the risk associated with that relationship.

Invoice summary:

The Legislature directs Congress and the President to enact legislation including:

  • implement strategies and recommendations from GAO ​​guidelines
    and the Treasury under the NDAA;
  • provisions that give federal banking regulators clarity on how to improve the ability of
    examiners to assess banks’ compliance with BSA/AML as applied to money issuers
    accounts;
  • an obligation for financial institutions to disclose a specific reason when refusing or closing
    an account; and
  • assistance to financial institutions to mitigate the cost of due diligence required to comply
    with the BSA/AML provisions impacting fund transmitters.

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Unless otherwise stated, the above information was obtained from the official website of the Washington State Legislature. Future meetings are subject to change. Bold Auburn Representatives.

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