Trump Administration Orders Tighter Financial Screening for Non-Citizens
President Donald Trump has signed an executive order directing federal regulators to strengthen customer identification standards within the U.S. financial system, with a greater focus on immigration-related risk factors as part of his administration’s broader immigration enforcement agenda.
The order, titled “Restoring Integrity to America’s Financial System,” instructs the Treasury Department and federal banking regulators to update guidance issued under the Bank Secrecy Act. Financial institutions will be encouraged to consider additional indicators when assessing potential risks involving money laundering, terrorism financing, labor trafficking, and other financial crimes.
According to the White House, the policy is intended to address vulnerabilities that criminal organizations may exploit, including the use of foreign consular identification cards and other methods that can obscure a customer’s identity. The guidance also identifies suspicious patterns such as repeated large cash withdrawals, the use of shell companies to conceal ownership, and certain off-the-books wage payment practices.
The executive order also calls for increased scrutiny when customers use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number for certain banking activities. ITINs are issued by the Internal Revenue Service to individuals who are required to pay U.S. taxes but are not eligible for Social Security numbers, including many non-citizens.
Administration officials said the policy is designed to strengthen the integrity of the financial system and protect national security. A White House fact sheet argues that weaknesses in customer identification procedures have allowed criminal organizations, including money laundering networks, to move illicit funds through U.S. financial institutions. The administration also contends that extending credit to high-risk borrowers can increase costs for American consumers.
Critics, however, warn that the changes could make it more difficult for lawfully present immigrants and undocumented individuals who pay taxes using ITINs to access banking services, mortgages, and other financial products. They argue the policy may discourage financial participation by individuals who rely on traditional banking despite complying with tax laws.
The executive order also directs the Treasury Department to consider regulatory changes that would allow banks to collect additional customer information, including immigration status and employment authorization, when appropriate under federal law.
The move is part of a broader immigration agenda that has included expanded enforcement measures, increased scrutiny of visa and citizenship applications, and proposals to limit certain federal benefits for non-citizens. At the same time, the administration has pursued financial deregulation in other areas and continues to promote cryptocurrency innovation, with Trump reiterating his goal of making the United States a global leader in digital assets.
