LANSING, Mich. — Sen. Jim Runestad announced Tuesday that he will introduce legislation to prohibit illegal immigrants from sending money out of the United States through foreign remittance transfers.

“Millions of illegal immigrants have flooded our country, taken American jobs, and then sent that money out of our economy,” said Runestad, R-White Lake. “They are not investing in our communities or helping our families. They are draining resources and ransacking the opportunities meant for lawful residents. Michigan needs to get serious about border security and enforcing immigration law, and that includes addressing the economic systems that reward and enable illegal activity.”

The bill would require banks and other financial institutions that facilitate international money transfers to verify that the sender is lawfully present in the country. Institutions that fail to comply would face penalties under the proposed law.

“Countless foreign nationals, many of whom are here illegally, send a significant percentage of their salaries abroad,” said Shari Rendall, who serves as the state and local engagement director for the Federation for American Immigration Reform. “According to the Center for Latin American Monetary Studies, Central American and South American foreign nationals send anywhere from 17% to 30% of their salaries abroad. The fact that individuals send money back to their families in their home countries creates an incentive for them to take the perilous journey to the U.S. This is especially true considering how far U.S. dollars go in most foreign countries.”

The legislation is expected to be formally introduced in the Michigan Senate in the coming days.

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