Trump Administration Orders Tighter Financial Screening for Non-Citizens

President Donald Trump has signed a new executive order aimed at strengthening customer identification standards across the U.S. financial system as part of his administration’s broader efforts to combat financial crime and enhance immigration enforcement.

The order, titled “Restoring Integrity to America’s Financial System,” directs the Treasury Department and federal financial regulators to update guidance under the Bank Secrecy Act. Financial institutions will be encouraged to consider additional factors when identifying customers who may present risks related to money laundering, terrorism financing, labor trafficking, or other illicit financial activity.

According to the White House, the policy seeks to close gaps in customer identification that criminal organizations have allegedly exploited. The updated guidance highlights several potential warning signs, including repeated large cash withdrawals, the use of shell companies to conceal ownership, certain off-the-books wage payment methods, and the use of foreign consular identification cards in specific circumstances.

The order also calls for increased scrutiny of customers who 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 file U.S. taxes but are not eligible for Social Security numbers.

Administration officials say the initiative is intended to protect the integrity of the U.S. financial system, strengthen national security, and prevent criminal networks from exploiting financial institutions. The order further directs the Treasury Department to evaluate regulatory changes that would allow banks to collect additional customer information, including immigration status and employment authorization where permitted by law.

Supporters argue the measures will improve fraud prevention and enhance financial security. Critics, however, contend that the policy 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.

The executive order reflects the administration’s continued focus on immigration enforcement while expanding financial oversight as part of its broader domestic policy agenda.