Major money-transfer corporations are resisting Missouri legislation that would block illegal aliens from sending money out of the country. 

“We are facing some strong headwinds from some money transmitters,” Missouri Treasurer Vivek Malek told The Heartlander.

Malek says industry giants such as Western Union and Remitly are pushing back against bills SB 1124 and HB 2412 requiring state-licensed money transmitters to verify a sender’s legal status before wiring funds abroad.

“I think their issue isn’t about the regulation itself or if it adds any workload,” Malek said. “It’s more about the loss of revenue they’ll see with these bills — something they aren’t saying out loud. 

“People without identifying documentation won’t be able to send money, and that will certainly undercut their revenues.”

The legislation is moving forward in the General Assembly following a successful committee hearing. Malek argues the proposal simply applies existing Missouri law regarding identity and legal status to the financial sector.

“We are already using it with our department of revenue when applying for driver’s licenses. So anybody who is coming to the state and wants to apply for a driver’s license, you have to prove your legal status in the country.

“We just want to apply the same standards to when somebody is trying to send money outside to their home country, to their friends and to their relatives. If you cannot prove that you are here legally, we don’t want those dollars to leave our state, our nation.

“It’s not a novel concept. It’s a common sense approach.”

Similar efforts by the Trump administration

The money-order crackdown in Missouri aligns with broader federal efforts on untracked foreign remittances in Minnesota.

“We have notified the White House about what we are trying to do here, and we are getting good support from them,” Malek said. “The Trump administration is looking at this from a benefit standpoint.”

The federal strategy, led by Treasury Secretary Scott Bessent, aims to prevent federal social service payments from being funneled into overseas accounts. The Treasury’s Financial Crimes Enforcement Network (FinCEN) is investigating money services businesses as part of a crackdown on social benefit abuses.

“Anyone who can prove where the money has come from … is fine,” Bessent said.

“You cannot send welfare money from the people of Minnesota to Somalia. Like, that just means you’re getting too much, or you can’t send stolen money.”

The federal order specifically targets transfers over $3,000 in Minnesota, whereas Missouri’s bill applies to all international transfers regardless of the amount.

Missouri is the first state in the nation to propose a pre-transfer mandate, requiring legal status verification before a single dollar can be wired abroad.