House passes bill regulating global money transfers

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With an increasing number of Minnesotans born in other countries, remittance transfers, which allow foreign workers in the United States to send money to other countries, has become important in the market place, Rep. Mike Freiberg (DFL-Golden Valley) said.

He sponsors HF365, which would make Minnesota laws apply to these transfers. Passed 127-0 by the House Monday, the bill now moves to the full Senate where Sen. Melisa Franzen (DFL-Edina) is the sponsor.

“Historically, Minnesota statutes based on the Uniform Commercial Code have regulated remittance transfers, providing protection both to banks and consumers,” Freiberg said at a House Commerce and Consumer Protection Finance and Policy Committee meeting earlier this month.

However, the federal Dodd-Frank Reform Act, which instituted a number of financial regulations after the recession began in 2008, did not make it clear whether any law applies to remittance transfers, he said.

His bill specifies that Minnesota law would apply to these transfers unless they’re preempted by federal law.

According to Freiberg other states have adopted laws similar to his bill, most notably New York.