President Trump signed an executive order on Tuesday titled “Restoring Integrity to America’s Financial System,” directing federal financial regulators and the Consumer Financial Protection Bureau to combat the financial infrastructure that enables illegal immigration.
The order targets money laundering, cartel cash flows, payroll tax evasion, ITIN abuse, off-the-books wage schemes, and reckless lending to unauthorized immigrants. Recent analyses show low-dollar cross-border funds have been used for terrorist financing, narcotics trafficking, human trafficking, and other illicit activities. Financial data reveals Chinese money laundering networks moved over $312 billion through U.S. accounts.
Within 60 days, the Treasury Secretary must issue an advisory identifying red flags such as payroll tax evasion, nominee accounts, shell companies, and labor trafficking. Within 90 days, proposed changes to Bank Secrecy Act regulations will strengthen customer due diligence requirements. The Consumer Financial Protection Bureau is directed to consider how potential deportation or loss of wages could impact loan repayment capacity.
The administration states that extending financial services to individuals without legal status creates structural credit risks threatening the banking system, with costs ultimately passed on to consumers through higher fees and interest rates. This executive order follows months of industry lobbying against a mandatory citizenship verification requirement but focuses instead on targeted regulatory guidance.
