President Donald Trump on Tuesday issued an executive order to protect U.S. financial institutions from illegal immigrants and foreign fund transfers that support crime.
“My Administration will not tolerate national security and public safety risks caused by illicit cross-border financial activity, nor will it permit risks to our financial system posed by the extension of credit or financial services to the inadmissible and removable alien population,” theordersaid.
“Even the provision of the most basic financial services, absent proper know-your-customer practices, can be abused to facilitate the funding of activities that pose significant threats to national security and public safety,” the order added.
“Low-dollar cross-border funds transfers have been used to facilitate or commit terrorist financing, narcotics trafficking, human trafficking, and other illegal activity,” Trump said, noting that Mexican-based cartels and Chinese money laundering networks have abused the financial system.
The order further noted the risks associated with extending credit to illegal immigrants who may be deported.
“Lending to aliens without legal work authorization or who face a substantial loss-of-wage risk creates a structural ‘ability to repay’ deficiency that undermines the safety and soundness of the national banking system,” the order said.
Afact sheetaccompanying the order said Trump acted “to protect America’s financial system from illicit activity, strengthen customer identification requirements for financial institutions, and address the credit risks posed by extending financial services to non-work authorized illegal aliens.”
The fact sheet noted that Secretary of the Treasury Scott Bessent will issue guidance to financial institutions so they can crack down on “payroll tax evasion, concealment of true account ownership, off-the-books wage payments and structuring schemes, labor trafficking, and the use of individual taxpayer identification numbers to open accounts or obtain credit without verified legal presence.”
Trump moves to tighten banking access for non-citizenshttps://t.co/0xumwDuTCf
Ensuring banks know the real identity of their customers will also ensure “institutions can identify the true owners of accounts when necessary to assess risks related to unlawful activity,” the fact sheet said.
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