President Donald Trump has introduced a new executive order aimed at tightening restrictions on non-citizens’ access to the U.S. financial system as part of his administration’s broader immigration enforcement agenda. The order, titled “Restoring Integrity to America’s Financial System,” directs federal financial regulators and the Treasury Department to increase scrutiny of banking customers by considering immigration status when evaluating potential financial risks.
Under the order, regulators will provide banks with updated guidance under the 1970 Bank Secrecy Act to help identify suspicious financial activities linked to crimes such as money laundering, terrorism financing, labor trafficking, and fraud. The administration argues that gaps in current identification practices have allowed criminal networks to exploit U.S. financial institutions.
The executive order specifically highlights concerns about the use of foreign consular identification cards and individual taxpayer identification numbers (ITINs). ITINs are commonly used by individuals without Social Security numbers, including undocumented immigrants, to file and pay taxes legally. The administration identified the use of ITINs in banking transactions as a potential “red flag,” alongside activities such as repetitive cash withdrawals, shell companies hiding account ownership, and off-the-books wage payments.
Critics warn that the policy could make it significantly harder for immigrants—especially undocumented individuals—to access basic financial services such as bank accounts, loans, and mortgages. Advocacy groups argue the changes may push more people outside the formal banking system, increasing economic vulnerability and reducing financial transparency.
The White House defended the order by stating it is designed to protect national security, combat illicit financial activity, and prevent American consumers from subsidizing what it describes as high-risk lending practices. Officials also claimed that undocumented immigrants receiving loans or credit can contribute to higher costs for other consumers through increased fees and interest rates.
Economists, however, generally attribute higher borrowing costs to broader financial factors such as Federal Reserve interest rates, bank funding expenses, inflation, and borrowers’ credit histories. Studies also show that relatively few mortgages are issued to ITIN holders, with major institutions like Fannie Mae and Freddie Mac typically reluctant to back such loans.
The order comes amid Trump’s wider immigration crackdown and broader financial policy agenda, which also includes deregulation efforts and support for cryptocurrency expansion in the United States.
