The Trump administration has signed an executive order titled “Restoring Integrity to America’s Financial System” that requires banks to treat a customer’s immigration status as a factor in evaluating potential financial risk. This policy change affects non-citizens seeking to open or maintain bank accounts and may alter the financial services landscape for undocumented immigrants and visa holders.
What changed
The executive order directs the Treasury Secretary and federal financial regulators to issue guidance to banks on identifying customers whose profiles or transactions potentially indicate risks like money laundering, terrorism financing, and labor trafficking in line with the 1970 Bank Secrecy Act. The changes are intended to “account for the risks foreign consular identification cards pose to the integrity of the United States financial system.”
A key “red flag” the order identifies is the use of an individual taxpayer identification number (ITIN)—which anyone, regardless of immigration status, can obtain in order to file and pay taxes—instead of a social security number when opening an account or taking certain banking actions.
This order represents a pullback from an earlier, stricter proposal that would have required banks to collect citizenship information from all customers, which finance leaders had largely opposed as onerous and extremely costly.
Why it matters
The move could make it more difficult for non-citizens, especially undocumented immigrants, to access financial services, even for legitimate reasons. Immigration practitioners should understand that their clients may face new barriers when opening accounts, sending wire transfers, or conducting routine banking transactions.
The guidance—once issued by Treasury and financial regulators—may prompt banks to implement stricter identity verification protocols or deny accounts to customers presenting foreign identification or using ITINs. This has practical implications for fee payments, maintaining trust accounts, and advising clients on financial planning. Critics previously warned that citizenship-collection proposals risked “debanking” millions of Americans, disproportionately affecting elderly Americans, low-income households, and rural residents.
Way forward
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Monitor Treasury guidance. Watch for the formal guidance issued by the Treasury Secretary and federal financial regulators under the executive order. Once published, review it carefully to understand which customers and transactions are most likely to face heightened scrutiny.
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Advise clients on documentation. Counsel non-citizen clients that they may face additional questions or documentation requests when opening or maintaining bank accounts. Advise them to prepare proper identification, proof of legal status (if applicable), and explanations of the legitimate purpose of accounts.
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Plan ahead for financial transactions. If representing a client who needs to wire immigration fees or maintain a trust account, advise them early about potential delays or account freezes related to the new policy.
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Stay informed on regulatory updates. Banking institutions may change their account-opening policies in response to the guidance. Continue to monitor whether your local banks are implementing these rules and how they affect your clients’ access to financial services.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Fola is a software company, not a law firm. Immigration policy changes frequently and may be subject to legal challenge. Please consult a licensed immigration attorney and verify all policy details against the primary source linked above before advising clients or making filing decisions. The guidance referenced in this order has not yet been issued; practitioners should monitor official Treasury and financial regulator announcements for implementation details.