By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Purpose. America’s financial institutions play a vital role in protecting the American public from financial fraud and misuse. My Administration has made significant efforts to lower the cost of financial services for Americans and to cut down on unnecessary and cumbersome Federal regulations that hinder economic growth and the competitiveness of financial service providers nationwide. Nevertheless, the longstanding policy of the United States is to adopt specific measures to protect our financial system from illegal use and to promote safe lending and other practices by financial institutions. My Administration will not condone risks to national security and public safety arising from illicit cross-border financial activities, nor will it accept risks to our financial system from providing credit or financial services to inadmissible and removable alien populations.
The provision of basic financial services, without appropriate know-your-customer practices, can be exploited to fund activities posing serious threats to national security and public safety. Small cross-border fund transfers have been used to support or conduct terrorist financing, narcotics trafficking, human trafficking, and other illegal activities. Financial trend analyses have revealed hubs of deadly fentanyl-related financial activities in the United States linked to Mexico-based cartels. A recent analysis of Chinese money laundering networks showed how foreign passport holders have used U.S.-based accounts to launder over $312 billion for criminal organizations, with human trafficking noted among the related activities. Strong customer identification programs and enhanced due diligence are essential to mitigate these risks.
Banks and other financial institutions should also be mindful of the credit risks associated with extending mortgage and auto loans, credit cards, and other consumer credit to the inadmissible and removable alien population. Many of these borrowers might face the risk of wage loss due to removal or their employers’ compliance with immigration laws. Lending to aliens without legal work authorization or those facing significant wage-loss risk creates a structural “ability to repay” issue, undermining the safety and soundness of the national banking system. Furthermore, employers violating immigration laws may underreport wages, use mismatched or invalid Social Security numbers and taxpayer identification numbers, or fail to properly withhold or remit payroll taxes. Such practices can create vulnerabilities in our financial system by obscuring income sources, distorting credit underwriting, and facilitating underground economic activities.
It is the policy of my Administration to restore integrity to America’s financial system, safeguard financial institutions against structural risks, and deter fraud and abuse.
Sec. 2. Definition. The term “Federal functional financial regulator” refers to the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Sec. 3. Safeguarding Against Fraud and Abuse. (a) Within 60 days of this order, the Secretary of the Treasury shall issue a formal Advisory to financial institutions about the risks associated with the exploitation of the U.S. financial system by non-work authorized populations and their employers. This Advisory will outline specific red flags and typologies associated with the following suspicious activities:
(i) Patterns of payroll tax evasion by employers or labor brokers, including systematic failure to withhold or remit Federal employment taxes for non-work authorized individuals;
(ii) The use of certain foreign-identity documents, nominee accounts, shell companies, or complex “funnel” structures designed to obscure the identity of the ultimate beneficial owners or conceal the true nature of payroll disbursements;
(iii) The strategic use of unregistered money services businesses, third-party payment processors, or peer-to-peer platforms to facilitate “off-the-books” wage payments intended to bypass Bank Secrecy Act reporting thresholds or tax obligations;
(iv) Patterns of repetitive, sub-threshold cash withdrawals or deposits that align with payroll cycles conducted outside regulated payroll processing systems, known as “structuring and micro-structuring”;
(v) Financial activity indicative of labor trafficking or forced labor (as defined in 18 U.S.C. 1589), where proceeds are mixed with legitimate business revenue or transferred to foreign jurisdictions; and
(vi) The use of an individual taxpayer identification number (ITIN) to obtain credit products or open depository accounts where the applicant lacks verified lawful immigration status. Although an ITIN facilitates tax compliance, its use instead of a Social Security number or valid work-authorized visa may be identified as a risk factor requiring enhanced due diligence to ensure the account is not used to facilitate the unlawful employment of unauthorized aliens.
(b) Within 90 days of this order, the Secretary of the Treasury, in consultation with the appropriate Federal functional financial regulators, shall propose changes to applicable regulations of the Bank Secrecy Act to strengthen risk-based customer due diligence requirements for covered financial institutions. These changes should ensure that:
(i) Institutions collect and verify enough customer identity information to reasonably identify the nominal and beneficial owners of accounts to assess risks related to illicit finance, sanctions evasion, fraud, or other unlawful activities; and
(ii) Institutions maintain the authority, where warranted by other risk indicators or supervisory concerns, to obtain additional information necessary to resolve material compliance concerns, including information relevant to whether account holders possess lawful immigration status and employment authorization in the United States when such information is relevant to assessing risks associated with fraud, identity misrepresentation, sanctions evasion, or other illicit financial activity, as part of a risk-based customer due diligence program.
(c) Within 180 days of this order, the Secretary of the Treasury and the appropriate Federal functional financial regulators shall consider changes to applicable regulations of the Bank Secrecy Act to strengthen risk-based customer identification program requirements for covered financial institutions. Any changes considered should account for the risks foreign consular identification cards pose to the integrity of the U.S. financial system.
Sec. 4. Addressing Structural Credit Risks. (a) Within 60 days of this order, the Consumer Financial Protection Bureau shall consider clarifying that potential deportation and loss of wages are factors that could adversely affect a non-work authorized borrower’s ability to repay an extension of credit under the “ability-to-repay” standards in 12 CFR Part 1026 and its appendices and supplements, and that lenders may consider such factors as part of a reasonable and good-faith underwriting determination.
(b) Within 60 days of this order, each appropriate Federal functional financial regulator shall issue guidance regarding the management of the potential credit risks posed by the non-work authorized population.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) The authority granted by law to an executive department or agency, or the head thereof; or
(ii) The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of the Treasury.
DONALD J. TRUMP
THE WHITE HOUSE,
May 19, 2026.
