President Donald Trump signed an executive order Tuesday directing banks to consider immigration status when evaluating financial risk, a move that could make it harder for noncitizens without Social Security numbers to access bank accounts, credit and other financial services.
The order, titled "Restoring Integrity to America's Financial System," directs the Treasury Department and federal regulators to issue guidance under the Bank Secrecy Act on identifying customers whose profiles or transactions may signal risks such as money laundering, terrorism financing or labor trafficking.
Among the red flags listed in the order is the use of an Individual Taxpayer Identification Number, or ITIN, instead of a Social Security number when opening an account or conducting some banking activity. ITINs are issued by the IRS to people who need to file taxes but are not eligible for Social Security numbers, including many undocumented immigrants and some other noncitizens.
The order also calls for regulators to account for what it describes as risks posed by foreign consular identification cards, documents that some immigrants have long used to open bank accounts when they lack U.S.-issued identification.
A White House fact sheet said the measure is intended to combat illicit finance and "restore integrity" to the banking system. It claimed gaps in customer identification practices have allowed criminal networks to move money through U.S. financial institutions and argued that some credit extended to undocumented immigrants creates costs that are passed on to consumers.
The order is narrower than an earlier proposal discussed by the administration that would have required banks to collect proof of citizenship from customers. Treasury Secretary Scott Bessent said in April that such an executive order was "in process," defending the idea by asking, "Why don't we have information on who's in our banking system?"
That broader proposal drew concern from banks and consumer advocates, who warned that citizenship checks could impose major compliance costs and risk limiting banking access for millions of people, including U.S. citizens who do not have ready access to passports or birth certificates.
Critics also noted that name changes, especially among married or divorced women, could complicate document verification. Financial industry officials had warned that requiring banks to verify citizenship for new or existing customers would be expensive and difficult to administer. One financial services lobbyist previously described the idea as a "complete nightmare" logistically.
