Trump Administration Tightens Banking Oversight of Non-Citizens

Mintesinot Nigussie

The Trump administration has ordered US financial authorities to strengthen monitoring of banking activities linked to non-citizens. It has stepped back from an earlier proposal that would have required banks to collect citizenship information from customers.

Under the new executive order, the Treasury secretary will issue guidance to banks on identifying suspicious behaviour related to payroll tax evasion, labour trafficking, and off-the-books wage payments.

The directive highlights the use of Individual Taxpayer Identification Numbers (ITINs) in cases where applicants do not provide Social Security numbers or valid work visas. Banks are also asked to monitor patterns such as repeated cash withdrawals and use of shell companies.

The measures are narrower than previous proposals, signalling a more measured approach after discussions with the financial industry.

Banks have faced several policy shifts from the Trump administration in recent months, including proposals on interest rate caps and allegations of political discrimination.

The latest directive aims to enhance oversight while avoiding overly burdensome requirements on financial institutions.