President Trump signed an executive order requiring banks to evaluate immigration status when assessing financial and credit risks. The directive instructs the Treasury Secretary and federal regulators to issue guidance on identifying suspicious transactions linked to legal status. This measure aims to combat money laundering and terrorism financing.
The order frames the policy as a safeguard for financial stability. It argues that banks face heightened credit risks if deported borrowers cannot repay loans.
The final version excludes a mandate for collecting citizenship documents from all customers. The banking industry successfully lobbied against that requirement to avoid significant compliance burdens.