Executive Order Directs Review of Banking Risks Linked to Immigration Status

An executive order signed on May 19 directs the Treasury Secretary to issue an advisory to banks about financial risks associated with lending to individuals living in the country without legal status. The order highlights credit products including mortgages, car loans, and credit cards.

It states that borrowers without legal work authorization may face wage loss due to removal or employer compliance with immigration law.

The advisory is to cover payroll tax evasion by employers or labor brokers, accounts opened under another person's name, unregistered payment services for off-the-books wages, labor trafficking, and use of individual taxpayer identification numbers without verified lawful immigration status.

The order requires the Treasury Department to consult with financial regulators and propose Bank Secrecy Act changes that would allow banks to collect information on lawful immigration status and employment authorization when relevant to fraud, identity misrepresentation, sanctions evasion, or other illicit activity.

A senator previously urged the Treasury Secretary to review rules permitting individuals without legal immigration status to obtain financial services. In an October 2025 letter, the senator noted that major banks accept foreign identification documents without verifying U.S. immigration status.

The letter stated that access to the American banking system should be reserved for those who respect laws and sovereignty, and that allowing accounts without status verification permits economic integration outside legal channels.