US President Donald Trump has said bank accounts used to support illegal immigration or hold welfare benefits received by undocumented migrants could be shut down and the funds seized under a new executive order aimed at tightening controls over the country's financial system.
In a post on Truth Social, Trump said his administration was taking steps to prevent banks, credit card companies and other financial institutions from being used to facilitate human smuggling, drug trafficking, illegal immigration and activities linked to criminal cartels.
"Access to our Nation’s Financial Systems must be limited to those who have a Legal Right to be here, and who are engaged in Lawful and Legitimate Commerce," Trump wrote.
The president claimed that undocumented migrants and foreign fraudsters cost American taxpayers billions of dollars every year and said the new measure formed part of his administration's efforts to combat fraud and reduce illegal immigration.
Trump said accounts being used to enable illegal immigration or store welfare payments received by undocumented migrants would be shut down. He added that the funds could face impoundment and seizure, with the money ultimately returned to taxpayers.
In his post, Trump described the executive order as a key tool in his immigration agenda and said it would help stop billions of dollars from leaving the United States through criminal activity. He also linked the measure to broader enforcement efforts against illegal immigration and organised crime.
Executive order targets financial system oversight
Trump's remarks follow the signing of an executive order titled Restoring Integrity to America's Financial System , which was announced by the White House in May.
According to a White House fact sheet, the order directs the Treasury Department and federal financial regulators to strengthen oversight of financial institutions and review existing rules governing customer identification and due diligence requirements.
The administration said the objective is to prevent criminal organisations, money launderers, drug traffickers and human smuggling networks from exploiting weaknesses in the US financial system.
The Treasury Secretary has been instructed to develop guidance for banks and other financial institutions on identifying warning signs linked to labour trafficking, payroll tax evasion, hidden account ownership structures, off-the-books wage payments and other potentially unlawful financial activities.
The order also calls for regulators to examine whether additional information should be collected from customers when assessing risks related to fraud, sanctions evasion and other financial crimes.
Focus on immigration-related financial risks
The White House said the administration is also reviewing financial risks associated with lending to individuals who do not have legal authorisation to work in the United States.
Under the executive order, federal banking regulators and the Consumer Financial Protection Bureau have been asked to assess whether existing lending guidance adequately addresses situations where a borrower's income may be affected by immigration enforcement actions.
Administration officials argue that financial institutions should account for potential repayment risks when extending credit to individuals who may not have stable legal work status.
The White House also said federal agencies would review current policies related to customer identification standards to determine whether further safeguards are needed to protect the integrity of the financial system.
