Why the Free Flow of Legitimate Money Over Borders Makes America Safer
As Congress debates its border policies, it should recognize that our nation is stronger by better enabling the legal flow of money around the globe, rather than pushing it underground.
The United States has a strong interest in encouraging the legitimate and transparent flow of money across borders, both as a matter of justice for the families who depend on these services and as a matter of national security.
I founded Remitly to make remittances — the act of sending money abroad — more fair, transparent, and cost-effective for the millions who depend on them. While using mobile technology to provide this service may be new, remittances have been a constant feature of the immigrant experience throughout American history, from Irish laborers in New York during the potato famine to the Filipino nurses working in Virginia today. Fast forward to 2017 and the annual flow of remittances globally approaches $600 billion; with the United States accounting for over twenty percent of that total.
While technology makes the transfer of consumers’ hard-earned money faster, safer, and more efficient, the basic reasons for sending haven’t changed. Health, education, food, clothing, shelter — basic needs that we take for granted here in the United States can be unreachable for many abroad. For those who have sought out a better life in America, they carry with them a sense of duty to provide for these basic needs of those they left behind. A recent survey of our customers revealed that over two-thirds send money to family members for necessities, paying for housing, food, and utilities, with the remainder sending for their families’ medical expenses and education.

The simple act of sending money abroad as a lifeline to their families is how these unsung heroes deliver on their promises to loved ones. Consider Dalia Maldonado, a Remitly customer who lives and works in California. Dalia sends $250 a month from her real estate job to help pay for her father’s knee surgery and a friend’s leukemia treatment, in addition to regularly assisting financially with staples like food and utilities.
Another Remitly customer, Jhan Laure, originally from the Philippines, made the difficult decision to move away from his wife and children to Los Angeles. Though he hasn’t seen them in almost a decade, he sends money home regularly to provide his family with a better future. These are just a few of the countless stories of the true reliance people all over the world have on remittances sent from the US. Beyond the human impact, when remittances are sent through modern and legitimate channels, they also help improve our national security here at home.
The overwhelming majority of those who send their hard-earned money back home are law abiding, taxpaying neighbors, living and working here legitimately. Where illegal activity may be implicated, it is licensed money transmitters like Remitly who are invaluable in the effort to detect and deter bad actors. As a tech company, we leverage the latest tools to verify our customers’ identities, fight fraud, and detect suspicious activity. And when we see something, we say something; promptly reporting any attempts to use our service for illicit purposes to the authorities. This information provides law enforcement with a view into global money flows, an invaluable tool in the country’s fight against illegal activity, money laundering, and terrorism.
Remittances also help establish a foundation of stability and opportunity not just for individual recipients, but for entire communities. If you were to sum up all remittances sent around the world you would find that they contribute more than four times the funds provided by foreign aid. As Homeland Security Secretary John Kelly recently noted, “if we can improve the conditions, the lot in life of Hondurans, Guatemalans, Central Americans, we can do an awful lot to protect the southwest border.”
I am committed to working with policymakers to ensure that money transfers remain accessible, affordable, and secure. These three principles should guide policymakers in maintaining low costs, reducing regulatory complexity, and modernizing our country’s anti-money-laundering rules. We should not reverse course and push this money to shadowy alternatives. As Washington addresses America’s security in the months and years to come, one of the most constructive things that can be done for consumers and the country is to encourage the legal and transparent flow of legitimate money across our borders.
