Restoring Integrity to America's Financial System
Treasury Directs Banks to Strengthen Customer Checks and Lending Rules
What it does
Agencies must tighten customer identity checks and lender underwriting, and the Treasury must issue an advisory and propose Bank Secrecy Act changes.
Real-world impact
- Banks and credit unions may face stricter customer identity checks and reporting.
- Lenders may factor possible deportation and wage loss into loan approvals.
- Employers using undocumented labor may face increased scrutiny for payroll tax evasion.
Topics
Summary
This order tells the Treasury and federal banking regulators to tighten protections against fraud, money laundering, and risky lending tied to people without legal work authorization. The Treasury must issue an advisory listing red flags—such as payroll tax evasion, fake or foreign identity documents, nominee accounts, micro-structuring, and misuse of ITINs—and propose stronger Bank Secrecy Act rules.
Banks, credit unions, lenders, employers, and borrowers without work authorization are affected. The goal is to protect the financial system, deter criminal activity, and reduce credit risks linked to potential deportation and payroll fraud.
Questions, answered
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