The Affordable Remittance Act requires the Federal Reserve to grant access to FedNow, its instant payment system, to affordable remittance providers within 90 days of the law's enactment. The bill aims to reduce the cost of money transfers sent by immigrants to family members abroad, which globally total $860 billion annually and currently average 6 percent in fees. Eligible providers must have remittances as their primary business, comply with anti-money laundering regulations, and be subject to state or federal consumer protection oversight, though the Federal Reserve cannot impose additional capital or liquidity requirements on them beyond what's needed for payment performance. The Federal Reserve has 60 days to define "affordable remittance provider" based on these criteria and will submit annual reports to Congress on remittance cost trends. The legislation does not require the Federal Reserve to provide master accounts to these providers, only access to the FedNow payment system itself.
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