President Donald Trump has introduced new measures aimed at restricting non-citizens’ access to certain financial services as part of his administration’s broader immigration enforcement agenda.
On Tuesday, Trump signed an executive order titled “Restoring Integrity to America’s Financial System,” directing federal regulators and financial institutions to incorporate immigration-related considerations into assessments of financial risk.
Under the order, the Treasury Department and federal banking regulators are instructed to issue updated guidance to financial institutions pursuant to the Bank Secrecy Act of 1970. The guidance will focus on identifying customers and transactions that may present risks related to money laundering, terrorism financing, labor trafficking, and other illicit activities.
According to the administration, the changes are intended to address potential vulnerabilities associated with customer identification practices, including the use of foreign consular identification documents and other forms of identification that officials argue could be exploited by criminal networks.
The executive order outlines several potential indicators of suspicious activity, including repeated cash withdrawals, the use of shell companies to obscure ownership, and payment arrangements designed to avoid official payroll systems. It also directs regulators to examine the use of Individual Taxpayer Identification Numbers (ITINs) in certain banking transactions. ITINs are issued by the Internal Revenue Service to individuals who are not eligible for Social Security numbers but are required to file U.S. taxes.
Critics argue that the policy could make it more difficult for non-citizens, particularly undocumented immigrants, to access banking services, potentially driving more financial activity outside the regulated system.
The White House defended the order, stating that it is intended to strengthen national security, combat illicit financial activity, and protect consumers from costs associated with fraud and financial crime.
The directive also instructs the Treasury Department to consider additional regulatory changes that would allow financial institutions to collect more customer information, including immigration status and employment authorization, as part of their compliance procedures.
The policy is part of the administration’s wider effort to tighten immigration enforcement while reshaping federal financial regulations.
