President Donald Trump has issued an executive order directing federal regulators to strengthen oversight of financial accounts held by non-citizens, aiming to combat money laundering, terrorism financing, and other illicit activities linked to immigration enforcement priorities.
The directive, issued under the authority of the 1970 Bank Secrecy Act, instructs the Treasury Secretary and agencies including the Financial Crimes Enforcement Network (FinCEN) to provide banks and financial institutions with updated guidance on identifying high-risk customers and transactions. It specifically flags the use of foreign consular identification cards and Individual Taxpayer Identification Numbers (ITINs) as potential indicators of elevated risk.
“President Trump is taking action to restore integrity to America’s financial system, cracking down on illicit activity that threatens national security and ending the extension of credit to high-risk borrowers that American citizens are forced to subsidize,” a White House fact sheet accompanying the order stated.
The order highlights several “red flags and typologies” associated with suspicious activity. These include repetitive large cash withdrawals, the use of shell companies to obscure beneficial ownership, “off-the-books” wage payments to evade payroll taxes, and reliance on ITINs in lieu of Social Security numbers for account openings or significant transactions. ITINs, issued by the IRS to individuals who are not eligible for Social Security numbers, allow non-citizens — regardless of immigration status — to file and pay taxes.
Administration officials argue that gaps in current customer identification practices have enabled terrorists, drug traffickers, money launderers, and criminal networks to exploit the U.S. financial system. They point to instances where banks extended mortgages, credit cards, and loans to undocumented immigrants, with associated costs allegedly passed on to American consumers through higher fees and interest rates.
The move is part of a broader immigration enforcement strategy that has included mass detention and deportation operations, restrictions on access to public benefits, and increased scrutiny of visa and citizenship applications. In November 2025, the Treasury Department announced plans to reclassify certain refundable tax credits as “federal public benefits,” further limiting eligibility for some non-citizens who file U.S. taxes.
Critics contend the policy could create significant barriers for law-abiding non-citizens seeking basic financial services. Immigrant advocacy groups warn that even those with legitimate reasons for using ITINs — such as filing taxes on earned income — may face heightened denials for accounts, loans, or mortgages. Economists note that banks have historically been reluctant to lend to ITIN holders due to perceived risks and limited documentation. According to a study by the Urban Institute, lenders issued approximately 5,000 to 6,000 mortgages to customers with ITINs in recent years, though government-sponsored enterprises Fannie Mae and Freddie Mac generally do not insure such loans.
The order directs the Treasury to consider regulatory changes that would allow financial institutions to more easily collect additional customer data, including immigration status and employment authorization, when risk factors are present. Regulators are also encouraged to factor deportation risk and immigration compliance into credit underwriting standards.
Protests have erupted in several cities in response to the administration’s aggressive immigration operations, which have resulted in high-profile enforcement actions and, according to some reports, the deaths of individuals during encounters with federal agents. The policy has drawn sharp criticism from Democratic lawmakers and civil rights organizations, who describe it as overly broad and potentially discriminatory.
Supporters, however, praise the initiative as a necessary step to protect the integrity of the financial system and prioritize American taxpayers. “Restoring sound underwriting standards puts money back in the pockets of law-abiding Americans,” the White House fact sheet added.
The directive comes amid a contrasting deregulatory approach in other areas of finance. The Trump administration has championed cryptocurrency innovation, with the president pledging to make the United States the “crypto capital of the planet.” Major banks have emphasized that account closures are driven by regulatory and legal risks rather than political considerations. JPMorgan Chase, for instance, stated in January that it closes accounts only when they pose compliance risks.
Implementation of the new guidance is expected over the coming months, with Treasury and financial regulators developing detailed examination procedures and risk assessment frameworks. The policy underscores ongoing debates about balancing national security, immigration control, and access to essential financial services in an economy where millions of non-citizens participate through work, taxes, and consumption.
As details emerge, financial institutions are preparing for enhanced due diligence requirements, while advocacy groups vow to monitor impacts on immigrant communities. The order reflects the administration’s continued emphasis on an “America First” approach to both immigration and economic policy.
