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🇺🇸 United States /Economy & Trade

Bessent announces crackdown on undocumented immigrants' use of U.S. banks

From CBS News · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Treasury Secretary Scott Bessent announced a crackdown on criminal enterprises, cartels, and undocumented immigrants misusing the U.S. financial system.
  • The administration is tightening oversight of financial activity linked to unauthorized employment, as directed by a May executive order.
  • Banks are urged to enhance customer identification and due-diligence rules to identify and report suspicious patterns.

The Trump administration is intensifying efforts to prevent criminal organizations and undocumented individuals from exploiting the U.S. financial system, according to Treasury Secretary Scott Bessent. Speaking to Arizona bankers, Bessent stated the administration "will not tolerate blatant abuse of our financial system, nor will it permit risks posed by the extension of financial services to illegal aliens."

This administration will not tolerate blatant abuse of our financial system, nor will it permit risks posed by the extension of financial services to illegal aliens.

— Scott BessentTreasury Secretary Scott Bessent stated the administration's stance on the misuse of the U.S. financial system by criminal enterprises and undocumented immigrants.

Bessent emphasized the crucial role banks play in this crackdown, asking them to "know your customers, identify risks as they arise, and report suspicious patterns before they metastasize into criminal schemes." This renewed push stems from a May executive order signed by President Trump, directing federal banking regulators to enhance oversight of financial activities connected to unauthorized employment.

We do not ask bankers to assume the burdens of border enforcement. But we depend on banks to do what you do best: know your customers, identify risks as they arise, and report suspicious patterns before they metastasize into criminal schemes.

— Scott BessentBessent explained the administration's reliance on banks to identify and report financial risks and suspicious activities.

The executive order, titled "Restoring Integrity to America's Financial System," mandates strengthened customer identification and due-diligence rules. The Treasury Department has reportedly met its initial deadlines, issuing guidance in June to help banks detect patterns associated with unlawful employment and related fraud. The Office of the Comptroller of the Currency followed with an advisory on lending to individuals without work authorization, instructing banks to assess a borrower's "willingness and capacity to repay."

to tighten oversight of financial activity linked to unauthorized employment.

— President TrumpThis phrase describes the core directive of the executive order signed by President Trump in May.

Bessent highlighted Arizona's existing compliance programs as a model for the partnership envisioned by the executive order. He assured bankers that the Treasury Department is committed to providing better tools for fraud detection and will be more attentive to community bankers' concerns.

weigh a borrower's "willingness and capacity to repay" as part of standard underwriting.

— Office of the Comptroller of the CurrencyThis instruction was part of an advisory issued to banks regarding lending to borrowers not authorized to work in the U.S.
DistantNews Editorial

Originally published by CBS News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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