The Financial Integrity for National Security Act (FINS Act) strengthens anti-money laundering regulations by applying stricter federal oversight to non-bank wire transfer services exploited by criminal organizations.
Pat Harrigan
Representative
NC-10
The Financial Integrity for National Security (FINS) Act aims to close loopholes exploited by international criminal organizations using non-bank money transfer services. This legislation specifically defines and regulates wire transfer service providers, such as Western Union and Ria, under existing anti-money laundering laws. By bringing these services in line with stricter financial oversight, the bill seeks to curb illicit activities like drug trafficking and terrorism financing.
FINS Act Forces Western Union and MoneyGram to Adopt Bank-Level Anti-Crime Rules, Effective Next Year
The new Financial Integrity for National Security Act (FINS Act) is straightforward: it’s making non-bank wire transfer services play by the same strict anti-money laundering rules as traditional banks. Congress is targeting a loophole where international criminal groups—think drug cartels and human traffickers—have been using services like Western Union, MoneyGram, Ria, and even digital platforms like XE to move illicit cash around the globe, according to Section 2.
The Loophole Closer
What the FINS Act does is simple but significant: it updates federal law (specifically Section 5312(a)(2) of title 31, U.S. Code) to explicitly include “wire transfer service providers” in the definition of financial institutions that must adhere to the Bank Secrecy Act. This means that these services, which move money electronically for consumers and businesses both domestically and internationally, will now face the same level of scrutiny, reporting requirements, and compliance burdens as your local bank (Section 3). For you, the user, this means those platforms will have to get much better at verifying who’s sending money and where it’s going. The Treasury Department has 180 days to write the final rules, and the changes become official one full year after the law is enacted.
What This Means for Your Money Transfer
In the real world, this is a huge win for national security and law enforcement. By forcing these companies to implement robust controls, it becomes exponentially harder for organized crime to use them as a financial pipeline. If you’re a small business owner who relies on international transfers to pay suppliers, or if you send remittances to family overseas, you benefit from a cleaner financial system that’s less likely to be exploited by criminals.
However, there’s a practical catch. Compliance isn't free. When the government mandates stricter security and reporting measures, these companies have to hire more staff, upgrade software, and invest heavily in monitoring systems. Historically, those increased operational costs tend to get passed down to the consumer (Section 3). So, while the system gets safer, we might see slightly higher transaction fees or even more rigorous identity verification checks when you go to send money. For someone relying on these services for essential family support, even a small fee increase can add up over time. It’s the classic trade-off: increased security and financial integrity versus potentially higher costs for the end user.