Congressional Subcommittee to Hold Hearing on Terrorism Financing Risk in Remittances and Money Transfers 

The U.S. House of Representatives Financial Services Committee (the “FSC“) Terrorism and Illicit Finance Subcommittee will on July 18, 2017 hold a hearing entitled “Managing Terrorism Financing Risk in Remittances and Money Transfers.”  The FSC memorandum to all of its members states that the “hearing will explore the terrorist and illicit financing risks that are inherent in any form of asset transfer
whether through formal banking channels, MSBs, other legitimate remittance networks, or through informal and unregulated value-transfer systems.” 

Concerns about the terrorism financing risks posed by non-bank facilitated money transfers have been constant since 9/11. The FSC’s memorandum describing the hearing reflects continuing concern. However, in the present time in which foreign financial institutions, businesses, charities, and individuals are increasingly being cut off from the formal financial system as a result of heightened (and insufficiently nuanced) anti-money laundering (AML) and counter-terrorism financing (CFT) enforcement that has led (ostensibly and in part) to, for example, the withdrawal of foreign correspondent banking relationships (derisking), it is important that Congress, other policy makers, regulators, and financial system participants redouble effforts to remediate the unintended consequences of current AML/CFT enforcement regimes. Presumably, some of the by-products of the current AML/CFT regime—particularly the adverse effects on charities and expatriate remittances—will be addressed at the hearing, which includes a witness from Oxfam America. 

Hearing time and location information, as well as the full witness list, are provided in the hearing memorandum

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MassPoint’s Related Services 

MassPoint PLLC provides AML/CFT and related regulatory counseling and compliance services to banks (including foreign and foreign correspondent banks) and bank industry groups, MSBs and other non-bank financial services providers, business, and charitable organizations. The Firm’s work in this area includes U.S. legislative and policy analysis and strategy, including quick turnaround analyses of Congressional hearings on key areas of concern for clients. For an example of MassPoint’s Congressional hearing coverage, please see this April 2017 account and analysis of a the FSC Terrorism and Illicit Finance Subcommittee Hearing on “Safeguarding the Financial System from Terrorist Financing.” 

For more information, contact MassPoint’s Founder and Principal, Hdeel Abdelhady, at habdelhady@masspointpllc.com or +1-202-630-2512.