Order directs financial regulators to address fraud and credit risks

The Treasury Secretary must issue an advisory to financial institutions about these warning signs. The advisory covers banks and other financial institutions and activity involving people without work authorization and their employers. The advisory must describe specific patterns linked to payroll-tax evasion, hidden ownership, unregistered payment services, cash structuring, forced labor, and certain uses of taxpayer identification numbers. The order does not itself require institutions to close accounts or deny services. The advisory must be issued within 60 days of May 19, 2026.

The Treasury Secretary must propose changes to Bank Secrecy Act rules for customer due diligence. The proposal covers financial institutions subject to those rules and their identification of account holders and beneficial owners. The proposed rules should require enough verified information to assess risks involving illicit finance, sanctions evasion, fraud, and other unlawful activity. They should preserve authority to request immigration or work-authorization information when it is relevant to those risks. The proposal would not itself put new regulations into effect, and implementation remains subject to law and available funding. The proposal must be made within 90 days of May 19, 2026.

Treasury and the appropriate federal financial regulators must consider changes to customer-identification rules. The review covers financial institutions subject to Bank Secrecy Act customer-identification requirements and the risks associated with foreign consular identification cards. The order requires consideration of rule changes, not their adoption. Any changes must follow existing legal authority and depend on available appropriations. The consideration must occur within 180 days of May 19, 2026.

The Consumer Financial Protection Bureau must consider clarifying that possible deportation and lost wages may affect repayment, while financial regulators must issue credit-risk guidance. The directions concern lenders serving people without work authorization and credit such as mortgages, auto loans, credit cards, and other consumer loans. The possible clarification would allow lenders to consider those factors in reasonable, good-faith underwriting decisions; it would not automatically require denial of credit. Implementation must follow applicable law and available appropriations, and the order creates no enforceable right or benefit. Both actions are due within 60 days of May 19, 2026.