President Donald J. Trump signed an executive order on Tuesday titled “Restoring Integrity to America’s Financial System,” directing the Treasury Department, federal financial regulators, and the Consumer Financial Protection Bureau to crack down on financial infrastructure that supports illegal immigration.

The order targets money laundering, cartel cash flows, payroll tax evasion, misuse of Individual Taxpayer Identification Numbers (ITINs), off-the-books wage schemes, and reckless lending practices for unauthorized immigrants. The White House stated these activities create national security risks and credit threats to the U.S. financial system.

Financial analyses indicate that cross-border funds transfers have been used for terrorist financing, narcotics trafficking, human trafficking, and other illegal activities. Specifically, hubs of fentanyl-related financial activity in the United States are linked to Mexico-based cartels, and Chinese money laundering networks have moved over $312 billion through U.S. accounts.

Within 60 days, Treasury Secretary Scott Bessent must issue a formal advisory to financial institutions identifying red flags such as payroll tax evasion, nominee accounts, shell companies, labor trafficking patterns, and the use of ITINs without verified legal status. Within 90 days, the Treasury will propose changes to Bank Secrecy Act regulations to strengthen customer due diligence requirements.

The order also directs the Consumer Financial Protection Bureau to consider clarifying that potential deportation or loss of wages could affect a borrower’s ability to repay loans under existing standards.