President Donald Trump has signed a new executive order aimed at restricting access to the U.S. financial system for undocumented immigrants, directing federal agencies to tighten banking oversight as part of his administration's broader immigration crackdown.
In a Truth Social post announcing the measure, Trump said the order would prevent "banks, Credit Cards, and Financial Institutions from being used to facilitate Human Smuggling, Drug Trafficking, Illegal Immigration, and the Criminal Cartels who orchestrate these activities."
He added that bank accounts "being used to enable Illegal Immigration, or to store the Welfare received by Illegal Aliens, will be shut down."
The order, titled "Restoring Integrity to America's Financial System," was signed May 19 and will be implemented through the Treasury Department alongside federal banking regulators including the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency.
Under the directive, regulators are expected to issue guidance within 60 days identifying "red flags" tied to immigration-related financial activity. Those include the use of Individual Taxpayer Identification Numbers, or ITINs, instead of Social Security numbers in certain banking transactions, repetitive cash withdrawals, and the use of shell companies or off-the-books wage payments.
The administration says the measure is intended to combat money laundering, terrorism financing, drug trafficking and fraud. Trump also argued that access to the financial system "must be limited to those who have a Legal Right to be here, and who are engaged in Lawful and Legitimate Commerce."
The executive order does not explicitly ban remittances or mandate the automatic closure of all accounts held by undocumented immigrants. However, economists and immigrant advocacy groups have warned the policy could make banks and remittance providers more reluctant to serve immigrant customers because of heightened compliance risks.
Trump also used the announcement to criticize anti-ICE demonstrators, writing that "your violent disruptions are only strengthening our resolve," as protests against immigration raids continue in several U.S. cities.
He further argued that the order would help stop "Billions" from leaving the United States through criminal activity and described the measure as potentially "the most effective means of reversing Biden's Border Invasion." Trump concluded his message by writing: "We shall soon find out!"
