Treasury Outlines Crackdown On Undocumented Immigrants' Use Of U.S. Banks
Treasury Secretary Scott Bessent announced in Arizona on Thursday, August 6, 2026, that the Treasury will crack down on what he called "blatant abuse" of U.S. banks by cartels, criminal enterprises and undocumented immigrants.[1]
The executive order sets 60-, 90- and 180-day deadlines for guidance and proposed rules on customer due diligence and identification, and Bessent said Treasury has met the initial deadlines.[1] Treasury pointed to June guidance from the Financial Crimes Enforcement Network and to an Office of the Comptroller of the Currency lending advisory as early steps.[1]
On May 19, 2026, President Trump signed the executive order "Restoring Integrity to America's Financial System," directing a crackdown on financial activity linked to unauthorized employment.[1] Law firm and accounting analyses describe the order as a policy signal that could eventually tighten know-your-customer standards and affect multinational employers and workers using Individual Taxpayer Identification Numbers.[1]
Industry advisers say banks may need to step up customer identification and due-diligence steps, raising compliance costs and questions about access to banking for some workers.[1]
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📌 Key Facts
- On May 19, 2026, President Trump signed the executive order 'Restoring Integrity to America's Financial System' directing a crackdown on financial activity linked to unauthorized employment.
- On August 6, 2026, Treasury Secretary Scott Bessent told Arizona bankers the administration will not tolerate "blatant abuse" of the U.S. financial system by criminal enterprises, cartels and undocumented immigrants.
- The order sets deadlines of 60, 90 and 180 days for guidance and proposed rules on customer due diligence and identification; Bessent said Treasury has met the initial deadlines, including June guidance from FinCEN and an OCC lending advisory.
- Analyses by Debevoise & Plimpton and KPMG describe the order as a policy signal that could eventually tighten know-your-customer standards and affect multinational employers and workers using ITINs.
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