Trump Order Directs Regulators to Curb Use of U.S. Banks in Illegal Immigration Networks
The directive asks Treasury and federal financial agencies to fold immigration-related risks into anti-money-laundering and lending oversight and could lead banks to tighten account access for non‑work‑authorized people.
Overview
- President Trump signed Executive Order 14406, “Restoring Integrity to America’s Financial System,” on May 19, which instructs Treasury and other regulators to act on links between illicit finance and immigration.
- The order requires the Treasury to issue a 60-day advisory identifying red flags such as payroll tax evasion and use of taxpayer identification numbers, and asks regulators to propose customer-due-diligence rule changes within set deadlines.
- The CFPB is directed to consider guidance that would allow lenders to factor potential deportation and loss of wages into ability-to-repay assessments for borrowers lacking work authorization.
- The White House and the President have said accounts used to enable illegal immigration could be shut and funds seized, but the order itself does not immediately close accounts or change statutes and requires future rules and guidance to be implemented.
- Banks, fintechs and consumer advocates warn the move will raise compliance costs, could push vulnerable people out of the banking system, and may disrupt remittances and credit access while legal and fair-lending limits are tested.