Nebraska bill would license informal money‑transfer networks, block foreign adversary control

Senator Elliot Bostar told the committee LB1063 is designed to close regulatory gaps for informal value transfer systems (IVTS), sometimes called Hawala, that move money by trust networks rather than through traditional banking rails.

Kelly Lammers, director of the Nebraska Department of Banking and Finance, told senators the bill has two central aims: to require informal value transfer operators to obtain money transmitter licenses, subject them to background checks and examinations, and to prohibit entities controlled by a federally defined foreign adversary from holding a Nebraska money transmitter license. "By explicitly requiring these individuals and entities to obtain a license with the department and undergo background checks and regular supervision and examination, 10‑63 may deter the use by bad actors," Lammers said.

Supporters including the Nebraska Independent Community Bankers Association argued the measure harmonizes state law with federal anti‑money‑laundering expectations and gives state regulators tools to identify unregistered operators, ensure proper records, and coordinate with federal partners when needed.

No formal vote occurred at the hearing; proponents asked the committee to advance the bill for further consideration and possible amendment.