The Trump administration ordered banks and federal agencies to strengthen foreign customer review within the American financial system. The measure, presented through an executive order signed this week, seeks for financial institutions to detect possible risks related to people living without gentle status in the country.
The document, as revealed by NBC Recordsdata, instructs banking regulators and government agencies to provide greater attention to accounts, credits, mortgages and financial cards linked to clients whose immigration status may represent, according to the White House, a “financial risk.”
Although the order does not directly require banks to collect the immigration status of each client, it does open the door to stricter controls and new internal policies within the banking system.
White House argues financial risks
According to the official text, the Trump administration maintains that banks could face financial losses if a person is deported before paying off loans, mortgages or lines of credit.
“The policy of my administration is protect the integrity of the US financial system”says the executive order promoted from the White House.
The Secretary of the Treasury, Scott Bessent, had announced weeks ago that the government considered it necessary tighten requirements for opening bank accounts.
“How can you really know a client if you don’t know if they have a gentle or irregular status?” questioned Bessent in statements reported by American media.
However, the measure was far from the harshest proposal that the financial sector feared. Previous reports indicated that the administration was considering mandating mandatory information about citizenship or immigration statussomething that was ultimately not included in the executive order.
Banks and migrant advocates react
The banking industry had been pressuring the White House for months to avoid new regulatory obligations. Financial institutions warned that requiring immigration documents could increase costs, generate more bureaucracy and complicate access to banking services for millions of people.
Organizations defending immigrants also reacted with concern, warning that These types of policies could push some families away from the formal financial system.
Specialists indicated to the aforementioned media that many immigrants use the Individual Tax Identification Number (ITIN) to pay taxes, open accounts or request certain financial products, even without Social Security.
According to data cited by the Urban Institute, between 5 thousand and 6 thousand mortgages were granted to people with ITIN in recent years, Although experts maintain that banks are already extremely cautious with this type of client.
The new order could also impact beneficiaries of programs such as DACA or the Temporary Protected Status (TPS), those who depend on the banking system to work, pay taxes and access basic financial services.
Meanwhile, critics of the measure consider that Trump seeks to turn the financial system into another tool for immigration adjustment heading to the midterm elections.
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