White House Orders Banks to Step Up Scrutiny of Undocumented Immigrants’ Financial Activity

Donald Trump signed Executive Order 14406, “Restoring Integrity to the American Financial System,” on May 19, 2026. It brings employment of undocumented immigrants, cross-border remittances and credit risk within the Bank Secrecy Act's anti-money-laundering framework. The White House also cited Chinese money-laundering networks' use of U.S. accounts to launder more than $312 billion as grounds for tighter scrutiny.

FinCEN issued a joint alert on June 5 identifying red flags including payroll tax evasion, accounts opened under stolen identities, shell companies and cash transactions below reporting thresholds. On July 13, the OCC, FDIC and NCUA instructed banks to manage repayment risks involving borrowers without work authorization. The order also calls for proposed revisions to customer due-diligence rules within 90 days and a review of identity-verification requirements within 180 days, potentially raising banks' KYC and AML costs.