The Financial Technology Association (FTA) joined other trade groups in opposing legislation in Alabama, Kansas, and Nebraska that would tax international money transfers, driving up costs for consumers and businesses and limiting access to innovative financial services.
“Licensed money transmitters provide consumers with a safe and reliable way to send money to family and friends, pay bills, and obtain other financial services,” the trade associations wrote in their letters to state legislatures. “Those who use and benefit from these services—both directly and indirectly—will be harmed by this tax. Like any other significant tax increase, this tax will distort behaviors, depress consumption, and directly impact businesses and consumers.”
The joint trades detailed several reasons for opposing the proposed legislation, including:
- It favors legacy financial institutions by only applying to licensed money transmitters and not traditional banks.
- It will harm local businesses by discouraging the use of money transmission services located in retail stores like gas stations, convenience stores, grocers, and pharmacies.
- It will harm consumers by directly increasing the cost of money transmission services.
- It could harm law enforcement efforts to combat fraud and scams by distorting consumer behavior and pushing consumers to unregulated channels to send money.
- It disrupts efforts to harmonize money transmission regulation through the passage of the Model Money Transmission Modernization Act.
Read the full letter to the Alabama State Legislature here.
Read the full letter to the Kansas State Legislature here.
Read the full letter to the Nebraska State Legislature here.