Arizona Lawmakers Advance Controversial Banking and Remittance Bill

Arizona lawmakers are moving forward with a controversial proposal from Senator Wendy Rogers (R-AZ) that would bar undocumented immigrants from accessing many banking services or sending money abroad.

Senate Bill 1421 -- approved this week by the House Commerce Committee -- would prohibit banks, credit unions, and check-cashing businesses from accepting identification issued exclusively to people who cannot prove legal status in the United States.

It would also prevent loans from being issued using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number, a practice often used by individuals who are not eligible for a Social Security number.

Additionally, the bill targets foreign remittances, money transfers sent from Arizona to other countries. Under the proposal, businesses that process wire transfers or money orders could not complete a transaction unless the sender provides proof of legal presence in the U.S.

Therefore, those companies would also have to report to the Arizona Department of Insurance and Financial Institutions each month, listing individuals who submitted such documentation.

Roger's Stance

Sen. Rogers said the measure is about protecting Arizona’s financial system and ensuring that economic benefits stay within the country.

“This is a bill that, when it was presented in the Senate, had a lot of disruptors and commotion. It’s contentious, but here’s what it does,” Rogers said. “This says that unless you’re a U.S. citizen, you cannot send remittances home or deal with banks in the same way.”

Rogers said she sparred with a banking industry lobbyist who opposed regulation, arguing that “you want to benefit from dealing with back-and-forth exchanges with noncitizens, but you don’t want to be regulated. You want it both ways. That time has come to a close with this bill.”

Calling the proposal a matter of national sovereignty, Rogers added, “This is a method to reassert our sovereignty as United States citizens in terms of where the economy and our profits are going, and they should not be going back home to other countries.”

SB 1421 passed along party lines and now heads to the full House for debate.