On May 19, 2026, President Donald Trump issued Executive Order No. 14406 (“Restoring Integrity to America’s Financial System”), which is likely to impact access to financial services for employees who are not U.S. citizens. The order directs federal financial regulators and the Treasury Department to treat immigration status as a financial risk factor, affecting how banks assess creditworthiness and manage customer relationships.
What changed
The executive order directs the secretary of the treasury and federal regulators to propose changes to Bank Secrecy Act regulations to strengthen due diligence requirements for financial institutions. Under the order, the Department of the Treasury must issue a formal advisory within 60 days to outline the red flags regarding the use of the financial system by non-work-authorized individuals and their employers. The directive focuses on tracking patterns of payroll tax evasion, the use of nominee accounts or foreign-identity documents, unregistered money services, and sub-threshold cash transactions tied to informal payroll processing.
The order also directs the Consumer Financial Protection Bureau to consider changing regulations to clarify that potential deportation and loss of wages are factors that could affect a borrower’s ability to repay a loan.
Why it matters
The executive order could lead to new proposed rules from federal regulators in the upcoming months. Employers in the financial services industry may wish to evaluate their customer due diligence protocols to gauge whether any changes may be needed in the future. More broadly, the executive order could make it more difficult for employees who are not U.S. citizens to open bank accounts, obtain credit, and access other financial services.
Immigration practitioners should anticipate that clients with work authorization issues—whether undocumented, on temporary visas, or awaiting adjustment—may face heightened scrutiny when applying for credit cards, loans, mortgages, or even bank accounts. Financial institutions may begin treating immigration status as a core underwriting factor rather than a secondary consideration. Clients relying on ITINs (Individual Taxpayer Identification Numbers) to establish credit may encounter new barriers.
Way forward
- Advise clients proactively: If your client has immigration vulnerabilities, discuss the financial compliance landscape now. Existing accounts and credit may be subject to heightened review.
- Monitor regulatory guidance: Watch for Treasury and CFPB guidance over the next 60+ days. It will provide the specific red flags and best practices banks must follow.
- Document work authorization: Clients with valid work permits or pending employment-based petitions should gather documentation showing their right to work or good-faith filing status.
- Review remittance practices: For clients sending money abroad, explore compliant channels and keep detailed records showing the source and destination of funds.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. The information is based on the executive order and related regulatory guidance as of the publication date. Immigration policy and financial regulation can change without notice. Consult a licensed immigration attorney or financial advisor to understand how this order affects your specific situation, and always verify details against the primary source linked above.