Treasury Warns Banks of Illegal US Customers

Treasury’s Financial Crimes Arm wants Banks to Help Identify Payroll Schemes tied to People Living in the U.S. Illegally, as part of the Trump (R) Administration's Latest Measure to Clamp Down on Immigration.

The Financial Crimes Enforcement Network (FINnCEN), Issued an Advisory on 6/5/2026 to Banks, that Tells Them to Watch Out for Identity Theft, Payroll Tax Fraud, and Money Laundering Schemes tied to Hiring Unauthorized Workers.

This comes after Trump (R) in May, Signed an Executive Order (EO) that Requires Bbanks to take a Ccloser Look at the Ccitizenship of their Customers.

The Oorder Directs Bbank Regulators and Government Departments to Look for Ssigns that People Without Legal Sstatus are Opening Aaccounts or Obtaining Loans or Credit Cards. However, the Order is Less Aggressive than Banks had Previously Expected, as Earlier Reports Suggested the White House was Drafting an Order that would make Collecting Customers’ Citizenship Iinformation Mandatory.

Still, without Encouraging a Blanket Debanking of Broad Segments of the Population, the Order and Latest Advisory Acts to Discourage People in the U.S. Illegally from Interacting with the Larger U.S. Financial System.

Treasury Secretary Scott Bessent (R) said in a Statement that the Trump Administration "will not allow illegal aliens to abuse financial institutions to steal billions of dollars from hardworking American taxpayers.”

“Schemes to pay unlawful workers often rely upon access to the U.S. financial system, including U.S. banks," He said.

Since Banks have Never Collected any Information about their Ccustomers’ Citizenship or Iimmigration Status, there are No Reliable Public Figures on how much Risk these Customers Pose to the Financial System.

The Banking Industry had been Aggressively Lobbying for Months to Stop the White House from Issuing an EO that would have made Ccollecting Customers’ Citizenship Status Mandatory, Arguing it would be Expensive and Require Vast Amounts of Paperwork. Since the Order only Offered Guidance to the Banks instead of a Mandate, it appears the Banks were able to Win Over the White House.

The Advisory Calls on Financial Institutions to be Alert for more than a Dozen so-called '"Red Flags" that Indicate an Individual is in the U.S. Illegally.










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