TechFlow News: On May 22, it was reported that on May 19, Trump signed an executive order requiring enhanced scrutiny of banking activities conducted by non-citizens in the United States. The order directs the U.S. Department of the Treasury to issue formal guidance to financial institutions to identify and report suspicious activities—including evasion of payroll taxes, concealment of the true beneficial owners of accounts, and off-the-books wage payments.
Citing the need to restore integrity to the financial system and guard against structural risks, the executive order mandates that the U.S. Department of the Treasury, the Consumer Financial Protection Bureau (CFPB), and federal financial regulators issue new rules within 60 to 180 days. These rules include strengthening customer due diligence for individuals lacking work authorization—and their employers—as well as incorporating potential deportation and income loss into assessments of borrowers’ repayment capacity. Additionally, the order calls for strict enforcement against illicit financial activities designed to circumvent the Bank Secrecy Act (BSA), including those involving Individual Taxpayer Identification Numbers (ITINs), shell companies, and transaction splitting.
