An executive order signed May 19, 2026, and published in the Federal Register on May 22, 2026, directs federal agencies and officials to address financial regulations regarding the non-work authorized population.
Within 60 days of the order, the Secretary of the Treasury must issue a formal advisory to financial institutions regarding risks associated with the non-work authorized population and their employers. The order directs that the advisory describe red flags such as payroll tax evasion, the use of shell companies to conceal payroll disbursements, off-the-books wage payments, and financial activity indicative of labor trafficking. The advisory must also cover the use of an individual taxpayer identification number to obtain credit products or open accounts where the applicant lacks verified lawful immigration status.
Within 90 days, the order directs the Secretary of the Treasury, in consultation with the appropriate federal functional financial regulators, to propose changes to Bank Secrecy Act regulations to strengthen risk-based customer due diligence requirements. The order says the changes should ensure institutions can obtain additional information, including whether account holders possess lawful immigration status and employment authorization, to resolve material compliance concerns.
Within 180 days, the order directs the Secretary of the Treasury and the appropriate regulators to consider changes to Bank Secrecy Act regulations to strengthen customer identification program requirements. The order states the changes considered should account for risks posed by foreign consular identification cards.
The order directs the Consumer Financial Protection Bureau to consider clarifying within 60 days that potential deportation and loss of wages could adversely affect a non-work authorized borrower’s ability to repay an extension of credit. Over the same 60-day period, the order directs each appropriate federal functional financial regulator to issue guidance on managing potential credit risks posed by the non-work authorized population. The order defines these regulators as the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.