Executive Order Directs Treasury to Strengthen Bank Customer Checks for Immigration and Fraud Risk

President Trump issued an executive order directing the Treasury Department to tighten how banks verify customer identities, specifically focusing on risks tied to immigration status and illicit finance. The order claims that lending to individuals without work authorization creates structural repayment risks and that foreign nationals are exploiting U.S. accounts for money laundering and terrorist financing.

Why it matters: This action shifts the regulatory focus toward using financial compliance tools to address immigration enforcement and perceived credit risks associated with undocumented populations. For banks, it means preparing for stricter identity verification protocols and potentially more complex customer screening processes. The practical impact depends on how Treasury drafts the subsequent advisory and proposed rules, which could increase compliance costs or alter lending practices for certain demographic groups.

Who it affects

• Banks and other financial institutions subject to Bank Secrecy Act regulations

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This is an executive order from the Executive Office of the President published in the Federal Register; you should review the full text at FR Doc No: 2026-10400 before assuming specific compliance changes are immediate.

Agency: Executive Office of the President
Source: Federal Register — read the official document