HB297 Alabama 2025 Session

Summary

Primary Sponsor

Jennifer FidlerRepresentative

Republican

Session

2025 Regular Session

Title

Cash transactions; report certain cash transactions to Alabama Securities Commission required

Summary

HB297 would charge a 4% fee on outgoing international wire transfers, send the money to new state funds for immigration enforcement and assimilation, offer a tax credit for customers, and expand cash-transaction reporting with penalties.

What This Bill Does

Money transmission licensees would collect a 4% fee on outgoing international wire transfers and remit those fees to the Alabama Securities Commission, which would deposit them into two new state funds. The funds are created to support Sheriff immigration enforcement and assimilation resources (including English language and public health programs). The bill also allows a tax credit against income tax for the fees paid, up to $5,000 per taxpayer, and requires notice to customers about eligibility. It tightens cash-transaction reporting and recordkeeping for licensees, imposes penalties for violations, establishes a legislative study commission to review the program, and provides a four-year sunset with an effective date of October 1, 2025.

Who It Affects

• Group 1: Money transmission licensees (and their executives/delegates) who must collect the 4% fee, remit it to the commission, maintain enhanced records, and face expanded reporting requirements and penalties.
• Group 2: Individual taxpayers who initiate international wire transfers and may claim an income tax credit for the fees paid (up to $5,000), with the Department of Revenue to notify eligible customers.

Key Provisions

• Imposes a 4% fee on outgoing international electronic wire transfers by money transmission licensees; fees are remitted to the Alabama Securities Commission and deposited into two new state funds.
• Creates the Sheriffs' Immigration Enforcement and Detainer Fund and the Immigration Assimilation Resources Fund to be used for immigration enforcement costs and for English language learning/public health resources, respectively.
• Provides an income tax credit equal to the international wire transfer fees paid, up to $5,000 per taxpayer; the Department of Revenue must notify customers about eligibility for the credit.
• Authorizes the Alabama Securities Commission and the Department of Revenue to administer the act; establishes a legislative study commission to review how fee proceeds are used and to recommend changes; the act is repealed after four years and becomes effective October 1, 2025.
• Expands reporting and recordkeeping requirements in Section 8-7A-13 for licensees, including changes in information, events (bankruptcy, dissolution, license suspension/revocation, felony charges), and change-of-control procedures; requires maintenance and transmission of AML-related records and immediate notification of regulatory investigations.
• Imposes specific cash-transaction thresholds (suspicious activity, $2,000+; $10,000+ per customer per day; $1,000+ per transaction; $3,000+ must comply with 31 C.F.R. §1010.415) and associated penalties (up to $5,000 per day per violation; Class C felony for evading reporting; Class B felony for subsequent violations).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions