Judicial Watch:

Amid the discord ignited by Donald Trump’s idea to block money transfers to Mexico until it funds a wall it’s important to note that a U.S. government program is largely responsible for the billions in remittances flowing south of the border from illegal immigrants.

The program is called “Directo a Mexico” (Direct to Mexico) and the Federal Reserve, the government agency that serves as the nation’s central bank, launched it nearly a decade ago. Judicial Watch investigated the outrageous taxpayer-subsidized initiative and obtained government records back in 2006. It was created by President George W. Bush following the 2001 U.S.-Mexico Partnership for Prosperity, undermines our nation’s immigration laws and is a potential national security nightmare. The goal was to provide low-cost banking services to illegal immigrants and facilitate the process for those sending money home. Remittances are transferred through the Federal Reserve’s own automated clearinghouse linked directly to Mexico’s central bank (Banco de Mexico).

At the time Federal Reserve officials acknowledged that most of the Mexicans who send money home are illegal immigrants so a Mexican-issued identification is the only requirement to use the government banking service. A colorful brochure promoting “Directo a Mexico” offered to help immigrants who don’t have bank accounts and assured the best foreign exchange rate and low transfer fees. A frequently asked question section posed this: “If I return to Mexico or am deported, will I lose the money in my bank account?” The answer: “No. The money still belongs to you and can easily be accessed at an ATM in Mexico using your debit card.” In short, the U.S. created this special banking system specifically for illegal aliens and tens of billions of dollars have flowed through it, according to figures obtained by JW from Banco de Mexico.

From the 2006 report from Judicial Watch:

While the federal government is subsidizing and marketing “Directo a México”, Arizona Attorney General Terry Goddard has seized millions of dollars en route to Mexico via Western Union, the largest U.S. money-transfer company. These financial transactions are allegedly linked to a sophisticated drug smuggling and human trafficking racket. Arizona courts have issued warrants that allow state investigators to intercept wire transfers that exceed $500 from 23 states.

“The taxpayer-subsidized ‘Directo a México’ program seems designed to facilitate the transfer of wealth by illegal immigrants outside the United States. This program undermines our nation’s immigration laws and is a potential national security nightmare,” stated Judicial Watch President Tom Fitton. “In the least, the Federal Reserve must limit this program to legal aliens and U.S. citizens only.”

Our government, rather than controlling illegal immigration, is catering to businesses who want to hire cheap labor, regardless of  immigration status, and it is an irresistible attraction to the flow of illegals that are willing to work for substandard wages. After all, although substandard by U.S. standards, the wages are many times higher than what they can earn in Mexico. Created during the Bush administration, it is just another indication that our elected officials – regardless of political party – are not on the side of the American worker.

The low wages of the illegals and the billions they send home also put a tremendous burden on social services in the United States, while taking entry level jobs out of the reach of American citizens.

Information from The Federal Reserve Bank:

Click to access DirectoMexicoFAQ.pdf

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