New York secures deal to protect money transfers to Mexico and five other nations

New York Governor Kathy Hochul has announced a significant agreement designed to protect money transfer services for users sending funds to Mexico and five other Latin American nations.

The deal, brokered by the Department of Financial Services and the Attorney General's office, hinges on Western Union's potential acquisition of Intermex. If the acquisition is finalized, Western Union will be obligated to preserve existing service points, maintain current destinations for remittances, and cap any potential fee increases for a period of three years. These conditions are crucial for the estimated 6,000-plus New York consumers who rely on Intermex annually.

The agreement stipulates that Western Union must maintain its physical presence in all zip codes where Intermex currently operates. Furthermore, retail services will continue to be offered to the six specified countries. Fee increases will be limited to match inflation for three years, and Western Union will be required to submit regular reports to the Department of Financial Services, including an independent audit one year after the acquisition closes.

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The company must maintain its physical presence in the zip codes where Intermex operates at the time of closing and preserve retail services to six countries.

The six Latin American countries benefiting from these special conditions are Ecuador, Guatemala, Honduras, Mexico, Nicaragua, and Peru. Western Union cannot reduce the services available for remittances to these corridors for three years. The company must also ensure that Intermex's current physical locations continue to offer services under the Western Union brand.

This measure from New York is part of a broader context for migrants sending money home. Recent financial restrictions imposed by the Trump administration could potentially complicate access to banking and international transfer services for migrants. The agreement, however, provides a layer of security for these essential financial flows.

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The agreement limits fee increases to levels that track inflation for three years.