Little known to Americans, but widely used by illegal aliens, a U.S. banking program is helping to funnel billions of dollars out of this country.
The George W. Bush administration launched the program in 2005 to provide low-cost banking services to immigrants – legal and illegal – as well as to facilitate the transfer of U.S. dollars. Remittances sent via Directo a Mexico are processed through the Fed’s automated clearinghouse to Banco de Mexico.
The Fed’s marketing materials openly cater to immigrants in the U.S. regardless of their legal status. The program is promoted (bilingually, of course) as “the best way to send money home,” offering “more pesos for every dollar.”
Mexicans in this country are catching on. Last year, they wired home a record $33.48 billion, with a big chunk flowing through Directo a Mexico. Banco de Mexico reported 104 million remittance transactions in 2018, nearly 6 million more than the previous year.
A Mexican-issued identification is the only requirement for using the Fed’s services at participating U.S. banks.
Convenient as this may be for migrants, the operation is a discredit to America’s central bank, and a drain on the U.S. economy.
The $33.48 billion funneled out of the country is $33.48 billion not circulating through the U.S. economy to purchase goods and services, create jobs or build businesses. Nor are those funds subjected to sales taxes, excise taxes, restaurant taxes, etc. “The loss of tax revenue – that could be used to pay for a large number of public services consumed by aliens in the United States – is staggering,” FAIR notes.
Federal Reserve officials acknowledge that most Mexican nationals sending money home are illegal aliens. By facilitating those transfers, Directo a Mexico provides financial services to people illegally present in this country.
There are federal laws against this. Title 8, Subsection 1324(A) of the U.S. Code expressly makes it an offense “to engage in a conspiracy to commit or aid or abet” illegal aliens.
Michelle Malkin — author of “Open Borders Inc.: Who’s Funding America’s Destruction?” — said, “Not only should President Trump fulfill the promise that he made many months ago to tax remittances but he should shut down this Federal Reserve program as well.”
It’s about time, and money. As House Speaker Nancy Pelosi, D-Calif., reminded Americans recently, “No one is above the law.” We presume that includes the Federal Reserve.