Press Releases

For Immediate Release
July 14, 2004	Contact: Gail Gawenda (608) 264-7800

Helping Hmong Immigrants Use Banks and Credit Unions

Thousands of Hmong immigrants will soon be making Wisconsin their home. As one of the fastest growing segments of the population, immigrants also represent one of the largest untapped markets for banks and credit unions. Many financial institutions have recognized this market potential by hiring staff from the local immigrant communities in their neighborhood to translate outreach materials. The end result: financial institutions bring new customers to their door, which benefits the customer, the community and the banking industry. Some financial institutions find that getting immigrants in the door is the easy part. Sifting through immigrant identification documentation, however, can prove to be a daunting task for financial institutions.

The identification requirements contained in the Patriot Act may inadvertently provide the potential of allowing financial institutions to fall into the trap of unwittingly but illegally discriminating on the basis of national origin. Immigrants have a bewildering assortment of documents issued by the United States Citizenship and Immigration Service (USCIS, formerly the INS), which can make it difficult for staff to correctly assess and record their identification information. Denying or delaying service because of confusion over identification documentation is perceived as poor customer service and may be considered discriminatory. For more information about USCIS documentation, please visit http://www.usdoj.gov/crt/osc/htm/facts.htm#list.

Immigrants may present unique issues in identification, especially for financial institutions, since they do not have a Social Security number. Immigrants are admitted to the United Sates because the USCIS has determined that they have a well-founded fear of persecution in their country of origin. Before being admitted, they have undergone thorough security screenings. Immigrants are admitted to stay permanently in the United States and have an urgent need to establish employment and financial services.

Upon arrival to the US, immigrants are issued an I-94 Arrival/Departure Card by the USCIS, which includes their name, date of birth, and Alien Registration number but does not include photographic identification. The USCIS also issues most immigrants an Employment Authorization Document, which includes both the Alien Registration Number and a picture. An immigrant's Employment Authorization Document meets the requirements of the Patriot Act of a government-issued picture identification with a unique identifying number. Therefore, it is not necessary for immigrants with an Employment Authorization Document to wait for a Social Security or state identification card to "appropriately establish their identity."

Most legal immigrants in the US have an Alien Registration Card, Form I551, which includes a picture and identifying information. The Alien Registration Number on that card can be used as the required unique identifier, even if the individual does not yet have a Social Security number.

If an immigrant does not have an Employment Authorization Document with their I-94 Card, the private voluntary resettlement agency has a Reception and Placement Program Assurance Form that also includes a picture. This document, coupled with the I-94 card, should suffice as identity documentation. Voluntary agencies such as Lutheran Social Services, Catholic Charities, Jewish Family Services or the International Institute often bring immigrants into the United State under a contract with the State Department. These agencies can answer questions about the immigrants they resettle, and can assist in partnering with local banks and credit unions in providing financial literacy information for these potential new customers.

The Departments of Financial Institutions (DFI) and Workforce Development (DWD) recently provided training to refugee caseworkers on the laws that affect bank accounts, loans and other financial transactions. DWD will also offer a "Money Smart" Financial Education series sponsored by the Federal Insurance Depositors Corporation (FDIC) and the Department of Labor (DOL) to Refugee Caseworkers in an effort to provide recent immigrants with the financial literacy skills they will need to be savvy consumers. The "Money Smart" series offers instruction on credit cards, credit reports, banking basics, spending and savings plans and home ownership.

Most immigrants come to the United States with no knowledge of our economic or financial systems and services. The collaborative efforts of state agencies, along with educational and informational training, aims to help these immigrants learn how to use mainstream financial services and understand their rights as consumers.

"Sharing resources, information and educational opportunities is one of the most effective ways we can integrate immigrants into our communities in Wisconsin," said DFI Secretary Lorrie Keating Heinemann. "We welcome these immigrants and we look forward to assisting them in resettling in Wisconsin to become active in our financial markets, the workplace and our communities."