Financial System Integrity

Unpublished Executive Order

This executive order was recently signed and has not yet been published in the Federal Register. This page will be updated once the official text has been published.

Summary

Makes rules for banks to stop illegal money activities and be careful when giving loans to people who may not be allowed to work in the country.

What problem does this solve?

Some believe that the American financial system is being used for illegal activities like drug and human trafficking, and banks are giving loans to people who might not be able to pay them back. This order directs government agencies to create new rules for banks to better check customer identities, spot suspicious activity, and manage lending risks.

What does this order do?

Issues a formal warning to financial institutions

Requires the Secretary of the Treasury to send an advisory to banks about the financial risks linked to people who are not authorized to work in the U.S. and their employers.

Identifies red flags for suspicious activity

Directs the Treasury to list specific warning signs for banks to look for, such as avoiding payroll taxes, using shell companies, and suspicious cash withdrawals related to paying workers.

Strengthens customer identity checks

Proposes new rules for banks to better verify customer identities to prevent illegal financial activity. This includes looking at the risks of using foreign consular identification cards.

Addresses credit risks for lenders

Requires financial regulators to issue guidance on the credit risks of lending to people without work authorization. It also clarifies that lenders can consider deportation risk when deciding if someone can repay a loan.

Flags ITIN use as a potential risk factor

Specifies that using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number to get a loan or open an account may be a risk factor requiring extra checks by the bank.

Who does this affect?

Immigrants without work authorization
Financial institutions
Employers

What is the real world impact?

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Uses financial rules to enforce immigration laws

Critics might argue that this order makes it harder for immigrants, especially those without legal status, to get bank accounts or loans. This could be seen as a way to pressure them to leave the country by cutting off access to essential financial services.

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Protects the financial system from illegal activities

Aims to stop criminals from using banks and other financial services for activities like terrorism, drug trafficking, and human trafficking by requiring stricter customer checks.

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Reduces financial risks for banks

Helps banks avoid risky loans by making them consider if a borrower might lose their job because they are not authorized to work in the U.S., which could make it hard for them to repay loans.

When does this start?

This order sets several deadlines for different government agencies to take action within 60, 90, and 180 days.

Treasury advisory to financial institutions

Within 60 days of May 19, 2026, the Secretary of the Treasury must issue a formal advisory to financial institutions about financial risks.

Guidance on credit risks

Within 60 days of May 19, 2026, federal financial regulators must issue guidance on managing credit risks related to the non-work authorized population.

Clarification of 'ability-to-repay' standards

Within 60 days of May 19, 2026, the Consumer Financial Protection Bureau must consider clarifying that deportation risk can affect a borrower's ability to repay a loan.

Proposed changes to due diligence rules

Within 90 days of May 19, 2026, the Secretary of the Treasury must propose changes to strengthen customer due diligence requirements for banks.

Consideration of changes to customer ID rules

Within 180 days of May 19, 2026, the Secretary of the Treasury must consider changes to customer identification program rules, focusing on foreign consular ID cards.

Restoring Integrity to America’s Financial System