Why This Matters

For many immigrants, sending money to family abroad is more than a financial act — it’s a lifeline. But remittances come with hidden legal and financial risks that most senders aren’t warned about. This guide explains how to send money securely, avoid scams, and protect yourself legally — even if you don’t have legal immigration status.

What Counts as a Remittance?

A remittance is any cross-border transfer of money from the U.S. to another country. Most remittances are:

  • Sent by individuals (not businesses)
  • Intended to support family or cover essential expenses
  • Handled by transfer companies or digital platforms

If you’re sending money regularly, the law considers this a financial activity — and certain rules may apply.

Even if you are undocumented, you still have consumer rights under U.S. law:

  • Error Resolution: You have the right to dispute errors or delays.
  • Clear Disclosures: Transfer services must show the exchange rate, total fees, and amount received — before you pay.
  • Receipt Required: You must be given a written receipt that includes your cancellation and refund rights.

These protections come from the Remittance Rule under the Consumer Financial Protection Bureau (CFPB).

Do You Need to Have Papers?

No. You do not need a Social Security number or lawful immigration status to send money legally.

However:

  • Many services will require a valid ID (foreign passport, consular ID, etc.).
  • Transfers over $1,000 may trigger extra identity checks.
  • Transfers over $10,000 may be reported to the IRS or flagged under the Bank Secrecy Act.

Keep all receipts and consider using services that accept ITINs or foreign IDs.

Avoiding Fraud and Exploitation

Immigrants are frequent targets for remittance scams. Protect yourself:

  • Never send money to strangers, no matter who they claim to be.
  • Avoid unregulated kiosks or suspicious promotions.
  • Use licensed services registered with FinCEN or your state’s regulator.

If your money is lost or stolen, file a complaint with the CFPB or your state attorney general.

Remittances are not taxable in most cases, but large or frequent transfers may raise flags:

  • Transfers over $10,000 in one or related transactions must be reported.
  • Large, repeated transfers may be viewed as income or support abroad.
  • Receipts can help prove family ties, support, or good moral character during legal status applications.

Tip: Keep a basic record of all remittances: dates, amounts, recipients, and reasons.

Best Practices for Safe Transfers

  • Use regulated services (e.g., Remitly, Xoom, Wise)
  • Avoid cash when possible; digital trails protect you
  • Use a consistent name and ID across transfers
  • Keep all receipts and confirmation numbers
  • Verify recipient names exactly as they appear on ID

If Something Goes Wrong

If your money was lost, delayed, or misused:

  1. Contact the transfer company directly.
  2. File a complaint with the Consumer Financial Protection Bureau
  3. Contact your state consumer protection office
  4. Reach out to local legal aid or advocacy groups for help

Resources

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