Financial System Integrity (E.O. 14406)

Summary

Aims to protect the U.S. financial system from illegal use and lending risks by strengthening rules for banks dealing with non-work authorized people.

What problem does this solve?

The U.S. financial system is being used for illegal activities like money laundering and drug trafficking, partly by people without legal status. This order directs government agencies to create stricter rules for banks to identify customers and assess lending risks related to immigration status.

What does this order do?

Requires new guidance on financial risks

Directs the Secretary of the Treasury to issue a formal warning to banks about the financial risks linked to people without work authorization and their employers.

Strengthens customer verification rules

Orders the Treasury Department to propose new rules for banks to better check customer identities to prevent illegal money activities and fraud.

Considers immigration status in lending

Tells the Consumer Financial Protection Bureau to clarify that a borrower's risk of being deported can be a factor for lenders when deciding if they can repay a loan.

Reviews use of foreign ID cards

Requires the Treasury Department to consider changing rules for customer identification, focusing on the risks that foreign consular identification cards might pose to the financial system.

Issues guidance on credit risks

Requires federal financial regulators to issue guidance to banks on how to manage the possible credit risks associated with lending to people who are not authorized to work.

Who does this affect?

Non-work authorized individuals
Financial institutions
Employers of non-work authorized individuals

What is the real world impact?

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Restricts financial access for immigrants

Uses the banking system to enforce immigration policy. Could make it very difficult for immigrants without work authorization, including those who pay taxes, to open bank accounts or get loans, pushing them into an underground economy.

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Reduces financial risks for banks

Protects banks from losing money on loans given to people who may be deported and lose their ability to pay back the debt. This helps keep the banking system stable.

When does this start?

This order sets several deadlines for different government agencies to take action within 60 to 180 days.

Advisory to financial institutions

Within 60 days (by July 18, 2026), the Secretary of the Treasury must issue an advisory to banks about the risks from non-work authorized populations.

Clarification on 'ability-to-repay' standards

Within 60 days (by July 18, 2026), the Consumer Financial Protection Bureau must consider clarifying that deportation risk affects a borrower's ability to repay loans.

Guidance on credit risks

Within 60 days (by July 18, 2026), federal financial regulators must issue guidance on managing credit risks from the non-work authorized population.

Proposed changes to Bank Secrecy Act

Within 90 days (by August 17, 2026), the Secretary of the Treasury must propose changes to strengthen customer due diligence requirements.

Review of customer identification rules

Within 180 days (by November 15, 2026), the Secretary of the Treasury must consider changes to customer identification rules, especially regarding foreign consular IDs.