Donald Trump’s return to office has reignited policy debates, with ripple effects already reaching the cross-border payments space. From remittance tax proposals to tighter compliance and crypto shifts, these changes could reshape how money moves in and out of the U.S. 

But what do these proposed policies mean in practice—and should MSBs be preparing for disruption or opportunity? 

We dive into all this and more in the first episode of our IPR Podcast: Talking Innovation in Payments & Remittances.

Will Deportations of Migrants Impact Remittances? Here’s What the Data Says  

Mexicans, a large diaspora and major US remittance senders, may face stricter immigration policies, putting this financial lifeline at risk. The “Remain in Mexico” program has led to nearly 11,000 migrants being sent back, potentially reducing the number of workers in the U.S. and, with them, the flow of cross-border payments. Since Trump’s arrival, 38,000 arrests and 207,000 deportations have been made, according to ICE. 

Despite his promise to deport 11 million people, the complexity of the process appears to make that goal unlikely. It could also open a window for some undocumented migrants to secure legal status. However, even large-scale deportation efforts may not significantly alter overall volumes due to the typically lower transaction size of undocumented remitters. The real concern? A remittance tax. 

Will a Remittance Tax on US-Latin America Transfers Disrupt the Market? 

The remittance tax from the US to Latin American regions is intended to minimise illegal immigration but can cause a significant dent in transactions, impacting money transfer operators, banks, and other players in the payments ecosystem by reducing revenue and lowering demand in certain corridors.  

It could also shift the balance for countries like Mexico, El Salvador, and Haiti—where remittances inject nearly $150 billion annually. Families who depend on these funds risk losing critical income. Money Service Businesses (MSBs) may have no choice but to raise fees, potentially driving customers toward alternative solutions like digital wallets and crypto. Interestingly, Trump seems to support crypto, so could this be the turning point that finally makes it more secure and mainstream? 

Recent developments in the One Big Beautiful Bill Act have introduced significant updates to the tax proposal. The Senate-approved version has lowered the tax rate to 1% from earlier higher proposals and now limits the tax to remittances funded through traditional cash-funded methods while exempting digital transactions. This change could reduce the burden for many non-U.S. citizens who send money digitally but will impact cash senders more heavily, including some minority groups and the elderly.  

The tax also now applies to both U.S. nationals and non-nationals, whereas previously only non-nationals were affected—broadening its impact. A clause that once allowed senders to reclaim remittance taxes has also been removed. 

Trump and Crypto: A Game-Changer for Cross-Border Payments? 

While Trump has halted any action to progress America’s CBDC, he’s taken more steps to advance the crypto movement, especially stablecoins, which has added a new dimension to the discussion. In a tweet, he unveiled the U.S. Crypto Strategic Reserve, which will include XRP, SOL, and ADA, with Bitcoin (BTC), Ethereum (ETH), and other key cryptocurrencies that will be added to “the heart of the Reserve.” Since the announcement, the value of the first three coins surged by 62%. 

The two messages posted by Donald Trump on Sunday, March 2, on his X Social account.

So, what does this mean? Cryptocurrencies offer the potential for faster, cheaper, and more accessible cross-border transfers, reducing traditional fees and delays. While stablecoins—pegged to the dollar—aim to provide price stability, but can still fluctuate alongside the US dollar’s value, which introduces some risks. The broader crypto ecosystem’s growth could open new alternatives for senders, though volatility and regulatory clarity remain key factors to watch. 

Stricter Compliance: A Roadblock for Remittances? 

The designation of cartels as terrorist organisations, combined with tighter immigration policies, is set to intensify compliance pressures on MSBs, who must now exercise even greater due diligence to avoid any unintended links to sanctioned groups. 

For migrants, this means longer wait times, extra fees, and fewer options to send money home. If traditional corridors start shutting down, people will have no choice but to look elsewhere, whether that’s the age-old hawala system or the rising use of crypto. 

Keeping up with ever-changing regulations is more than just a headache—it’s a matter of survival. A single compliance slip-up can trigger heavy fines or force a business to shut its doors entirely. Yet, many companies still juggle multiple software tools, manually stitching together fragmented systems to stay compliant. 

Our Liveness feature utilises biometric-powered selfie checks, through which remitters can instantly confirm their identity—cutting fraud risks while keeping regulators satisfied. It’s this kind of innovation that makes compliance less of a burden and more of a competitive advantage. 

So, if you want to streamline your operations and power your growth, book a demo with one of our experts: https://calendly.com/remitone-oussama/free-30min-consultation-website

Watch the full podcast for the complete insights and strategies. 

In this article, we’ve only covered a handful of key points. For a deeper understanding and practical steps to help your business adapt, tune into the full discussion — and don’t forget to subscribe so you’re always on top of all the industry news. 

Youtube: https://www.youtube.com/watch?v=zMZm4THw03k

Spotify: https://open.spotify.com/episode/7beXO7FlCs8GyImd6BUypf

Apple podcasts: https://podcasts.apple.com/us/podcast/trumps-remittance-tax-threat-or-opportunity/id1822769031?i=1000716221708