Senate Unanimously Passes Bill Aiding Financial Institutions Serving Immigrants

The House Consumer Protection and Business Committee held a public hearing on Senate Joint Memorial 8004, which addresses “de-risking” by financial institutions. The bill passed the Senate 47-0 and must pass the House in order to go to the Governor’s office for an opportunity to be signed into law. 

The bill, if passed, would make a formal request of the U.S. Congress that it implement strategies and recommendations that better enable banks to serve immigrants and make it harder for banks to avoid assisting immigrants to send funds overseas.

SJM- 2021-22 Addressing “de-risking” by financial institutions

Senate Bill Report (Orig.)
House Bill Analysis 2021
House Bill Report
Senate Bill Report
House Bill Analysis 2022

The bill analysis and bill report are prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

House Bill Analysis Brief Summary of Joint Memorial

• Requests federal legislation that addresses actions taken by financial institutions to terminate or restrict business relationships with certain customers.

Senate Bill Report Brief Summary of Joint Memorial

• Directs Congress to enact legislation that will provide transparency to customers or former customers of financial institutions that need to send remittance to families in other countries through wire transfers.

“De-Risking” 

The term “de-risking” refers to actions taken by a financial institution to terminate, fail to initiate, or restrict a business relationship with a customer or category of customers rather than manage the risk associated with that relationship.

Summary of Bill:

The Legislature asks Congress and the President to enact legislation that includes:

• implementing the strategies and recommendations resulting from directives to the GAO
  and the Treasury under the NDAA;
• provisions that give federal banking regulators clarity on how to improve the ability of
  examiners to evaluate banks’ BSA/AML compliance as applied to money transmitter
  accounts;
• a requirement that financial institutions disclose a specific reason when denying or closing
  an account; and
• assistance for financial institutions to mitigate the cost of due diligence required to comply
  with BSA/AML provisions impacting money transmitters.

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Unless otherwise noted, the above information was obtained from the official Washington State Legislative website. Future meetings are subject to change. Auburn representatives in bold.