KEY TAKEAWAYS
- President Trump signed “Restoring Integrity to America’s Financial System” executive order targeting non-citizen access to U.S. financial institutions
- Order requires banks to flag accounts using Individual Taxpayer Identification Numbers (ITINs) and consider immigration status when assessing financial risk
- White House argues measure combats money laundering, terrorism financing, and labor trafficking while protecting American consumers from subsidizing high-risk borrowers
- Critics warn the directive could further restrict financial services for undocumented immigrants and legal non-citizens
President Trump moved Tuesday to restrict non-citizens’ access to America’s financial system, signing an executive order aimed at preventing illicit activity and protecting U.S. consumers from what the administration calls predatory lending practices. The directive, titled “Restoring Integrity to America’s Financial System,” requires financial institutions to flag accounts using Individual Taxpayer Identification Numbers (ITINs) and consider immigration status when evaluating potential risks.
What the Trump Administration Said
“President Trump is taking action to restore integrity to America’s financial system, cracking down on illicit activity that threatens national security and ending the extension of credit to high-risk borrowers that American citizens are forced to subsidize,” according to a White House fact sheet accompanying the order.
The administration argues the measure addresses critical gaps in banking oversight. “Gaps in customer identification practices have allowed terrorists, drug traffickers, money launderers, and other criminal networks to exploit U.S. financial institutions to move illicit funds and evade law enforcement,” the fact sheet stated, citing documented Chinese-linked money laundering networks as evidence.
The order directs Treasury Secretary Janet Yellen and federal financial regulators to issue guidance identifying red flags associated with suspicious activity, including repetitive cash withdrawals, shell company use to obscure ownership, off-the-books wage payments, and reliance on ITINs instead of Social Security numbers for account opening or transactions.
“Restoring sound underwriting standards puts money back in the pockets of law-abiding Americans,” the White House added, contending that banks extending mortgages and credit to undocumented immigrants artificially inflate costs for legitimate consumers through higher fees and interest rates.
Legal and Regulatory Framework
The executive order operates under the Bank Secrecy Act of 1970, which empowers federal authorities to establish anti-money laundering protocols. The directive additionally instructs Treasury to evaluate regulatory modifications that would enable financial institutions to more readily collect customer data, including immigration authorization status and employment documentation.
Trump has previously clashed with major banking institutions over account closures, filing a $5 billion lawsuit against JPMorgan Chase and CEO James Dimon following the January 6, 2021, Capitol riot. JPMorgan Chase responded in January, stating: “Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so.”
Background and Implementation
The order represents an extension of the administration’s broader immigration enforcement agenda. Individual Taxpayer Identification Numbers, accessible to all regardless of immigration status, allow non-citizens and undocumented immigrants to file and pay taxes. However, banks remain generally reluctant to extend credit to ITIN holders, with government-sponsored mortgage companies Fannie Mae and Freddie Mac typically declining to insure mortgages for such borrowers.
Recent data from the left-leaning Urban Institute suggests lenders issued approximately 5,000 to 6,000 mortgages to ITIN customers, indicating limited uptake despite regulatory restrictions.
Broader Policy Context
This directive aligns with the Trump administration’s simultaneous push toward financial deregulation benefiting non-traditional banking entities and explicit embrace of cryptocurrency markets. Trump has pledged to transform the United States into the “crypto capital of the planet,” signaling a complex regulatory agenda balancing stricter immigration-related financial controls with looser oversight in emerging sectors.
Fox News Digital / CelebBNews contributed to this report.