Beginning from January 1, 2026, a new U.S. law requires a 1% tax on money transfers sent outside the United States when they are paid for with cash or cash-equivalent instruments, like money orders or cashier’s checks.

International money transfer agencies are informing their customers of the new law in email messages.

“We want to make you aware of a new federal requirement that begins January 1, 2026. It applies to some types of money transfer payments in the U.S,” RIA Money Transfer said in a statement to their customers.

What’s changing?

A new U.S. law requires a 1% tax on money transfers sent outside the United States when they’re paid for with cash or cash-equivalent instruments, like money orders or cashier’s checks. This tax is mandated by the government, and all providers are required to collect it.

What this means for you

You’ll only see this tax added when you:

Pay for your transfer in cash.

You will not see this tax when you:

Pay by bank transfer

Pay by debit card or other digital methods

‘Everything else stays the same: your transfer speed, your rates, and how you send money. We’ll keep you updated as this regulation takes effect,” said RIA Money Transfer.

Ria Money Transfer connects people worldwide through the largest cross-border, real-time payments network in the world. Get competitive exchange rates, flexible delivery options, and access to 190+ countries.

Support the New Americans magazine to continue to serve our community with precise news that affect the new American, immigrant and refugee community. https://paypal.com/donate/?hosted_button_id=8LHFS78NRNJJY&source=url