Trump Treasury Pushes Banks to Stop Doing Business With Illegal Immigrants

President Donald Trump’s second-term crackdown on immigration is increasingly focused on pressuring U.S. financial institutions not to do business with those in the United States illegally.

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In July, the federal government disclosed plans to require U.S. banks to consider the citizenship of customers, making it more difficult for applicants to be approved for a loan or account.

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Bessent is imploring America’s largest financial institutions to flag suspicious activity their systems detect in accounts, such as money laundering by cartels and under-the-table payments made to illegal workers.

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Trump signed an executive order in May that required banks to report payroll tax evasion, suspected shell companies, and the unverified use of an individual taxpayer identification number. ITINs are nine-digit tax processing numbers that the IRS issues to foreigners for tax filing.

It also directed the Treasury Department and bank regulators to look for indicators that illegal immigrants are using bank accounts, loans, or credit cards with major financial institutions in the U.S.

Banks were notified in June on how to spot banking patterns tied to illegal labor, labor brokers, payroll tax evasion, and identity theft.

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