The White House issued an executive order directing the Department of the Treasury, the Consumer Financial Protection Bureau, and federal banking and credit union regulators to tighten Bank Secrecy Act controls and consumer credit risk management tied to financial activity involving individuals without US work authorization and their employers. The order requires follow-up action on suspicious activity indicators, customer due diligence, customer identification, and ability-to-repay assessments. Within 60 days, Treasury must issue a formal advisory to financial institutions describing red flags and typologies for suspicious activity, including payroll tax evasion, concealment through nominee accounts or shell structures, off-the-books wage payments via unregistered money services businesses or peer-to-peer platforms, structuring around payroll cycles, labor trafficking, and use of an individual taxpayer identification number to obtain accounts or credit without verified lawful status. Within 90 days, Treasury, in consultation with the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration, must propose changes to Bank Secrecy Act implementing rules to strengthen risk-based customer due diligence for covered financial institutions, including identity verification and, where other risk indicators or supervisory concerns warrant it, additional information relevant to lawful immigration status and employment authorization. Within 180 days, Treasury and those regulators must consider changes to customer identification program rules, including the risks posed by foreign consular identification cards. Separately, within 60 days the Consumer Financial Protection Bureau must consider clarifying that potential deportation and loss of wages may affect a non-work authorized borrower's ability to repay under 12 CFR Part 1026, and each federal functional financial regulator must issue guidance on managing the related credit risks.
The White House2026-05-19
The White House directs Treasury, CFPB and federal financial regulators to tighten Bank Secrecy Act due diligence and credit risk controls for non-work authorized populations
The White House issued an executive order directing Treasury, the Consumer Financial Protection Bureau, and federal banking and credit union regulators to tighten Bank Secrecy Act controls and consumer credit risk management for financial activity involving individuals without US work authorization and their employers. Treasury must issue an advisory on suspicious activity red flags and propose changes to risk-based customer due diligence and customer identification program rules. The CFPB and federal functional financial regulators must consider clarifying ability-to-repay standards for non-work authorized borrowers and issue related credit risk management guidance.