H.R. 3066 — FINS Act

This section states congressional findings that international criminal organizations exploit unregulated commercial wire transfer services (e.g., Western Union, Ria, and XE) to facilitate human trafficking, drug trafficking, and terrorism; that such services face minimal regulatory oversight compared to banks; and that strengthening oversight will enhance national security and align non-bank financial institutions with anti-money laundering laws and the Bank Secrecy Act.

This section amends the Bank Secrecy Act (BSA) to designate wire transfer service providers as financial institutions subject to its reporting and recordkeeping requirements (i.e., to assist government efforts to detect money laundering and terrorist financing). (As background, the BSA generally requires covered financial institutions to maintain records of funds transfers and report suspicious activities and currency transactions over $10,000.) It defines a wire transfer service provider as an entity that engages in the electronic transfer of funds on behalf of consumers or businesses, either domestically or across international borders, including digital remittance platforms. The section directs the Secretary of the Treasury to issue implementing rules within 180 days of enactment, with the amendments effective one year after enactment.