H.R. 7097: No American Benefits Abroad Act

This bill, titled the No American Benefits Abroad Act, aims to restrict certain financial transactions for individuals receiving government support. Here’s a breakdown of the main points of the legislation:

Prohibition on International Money Transfers

The bill states that individuals who receive public assistance from the government are not permitted to send money out of the United States via international wire transfers. This means that anyone who is benefiting from specific government programs cannot transfer funds directly to individuals or entities located outside the country.

Requirements for Service Providers

Companies or individuals that offer international wire transfer services will be required to implement specific procedures. Before carrying out a wire transfer, they must ask the sender whether they receive public assistance and must obtain a written notification if the answer is yes. This requirement creates an additional step for both the service providers and the individuals wishing to send money internationally.

Definition of Public Assistance

The bill defines "public assistance" as any payments or benefits provided to an individual from means-tested welfare or public assistance programs. These programs typically require individuals to demonstrate financial need in order to qualify for benefits, which can include a variety of support services and financial aid.

Purpose and Intent

The overall intent of the bill is to curb the outflow of government assistance funds. Lawmakers may believe that restricting international transfers will help ensure that public assistance is used for its intended purpose within the United States and to discourage potential misuse of such funds.

Implementation and Oversight

The bill would likely result in increased scrutiny and regulatory requirements for international wire transfer services, as they would need to ensure compliance with this new rule. This could involve adjustments to their operational processes to accommodate the new requirement of checking a customer's public assistance status before processing transactions.

Enforcement Challenges

Enforcing this prohibition could present challenges. For instance, it may be difficult to monitor and track all wire transfers and verify whether individuals are complying with the notification requirement. Questions may arise about the privacy of individuals and how their status as public assistance recipients is handled during the wire transfer process.

Relevant Companies

• WMGI - Wright Medical Group N.V. may see impacts if its operations or products involve international transactions related to public assistance recipients.
• COMP - Provide international money transfer services and would have to implement new protocols to comply with the bill.