While up to now research on transnational migration and remittances has strongly concentrated on questions linked to poverty reduction and their use by receiving households, we emphasize the potential impact of remittances on financial sector development. We base our research on the assumption that the impact of remittances on the financial sector depends on several factors that can be governed through different regulations and policies. We map policy options, which potentially contribute to the goal of financial development, and present examples from the Latin American context.