On May 19, 2026, President Trump signed an executive order titled Restoring Integrity to America's Financial System, directing the Treasury Department and federal financial regulators to incorporate immigration status into the evaluation of financial risk. The order represents a significant policy shift for the banking sector, signaling that account-holder immigration status will move from a peripheral consideration to a recognized component of supervisory expectations. Financial institutions of every size should anticipate corresponding adjustments to examination priorities in the months ahead.
Among its central directives, the order instructs regulators to treat use of an Individual Taxpayer Identification Number (ITIN) as a factor warranting enhanced scrutiny. ITINs are widely used by individuals who are not eligible for a Social Security number, including many lawful taxpayers, and they have long been an accepted form of identification for account opening and lending under existing Customer Identification Program frameworks. The order also calls on regulators to identify indications that customers without legal status are opening deposit accounts or obtaining loans and credit cards, raising the prospect of more pointed inquiries during examinations and a closer look at related anti-money-laundering (AML) controls.
Notably, the order stops short of imposing an affirmative obligation on banks to collect citizenship data from customers, an approach the industry had publicly opposed. The result is a heightened oversight environment paired with the absence of a clear federal data-collection mandate. Institutions are left to recalibrate risk models, transaction-monitoring rules, and account-opening procedures without a uniform federal data set to draw upon, while remaining mindful of fair lending laws, the Equal Credit Opportunity Act, and state consumer protection requirements that limit how immigration status may be considered.
Financial institutions should review existing policies governing ITIN-based relationships, update AML and Bank Secrecy Act risk assessments, and prepare staff for examination inquiries that touch on immigration-related risk factors. Coordination among compliance, legal, and lending functions will be essential to manage litigation and reputational exposure while continuing to serve eligible customers.
This article is intended for general informational purposes only and does not constitute legal advice. Financial institutions and affected customers should consult qualified counsel for guidance tailored to their specific circumstances.