Trump Signs Order Aimed At Preventing Illicit Financial Activity
President Donald Trump is implementing measures to restrict non-citizens’ access to financial systems in the United States as part of his administration’s broader immigration enforcement.
On Tuesday, Trump signed an executive order titled “Restoring Integrity to America’s Financial System” that would require institutions to consider a customer’s immigration status when assessing potential financial risks.
In accordance with the 1970 Bank Secrecy Act, the new order mandates that the Treasury Secretary and federal financial regulators provide banks with guidance on identifying customers whose profiles or transactions may indicate risks such as money laundering, terrorism financing, and labor trafficking.
The order stated that the purpose of these modifications is to “take into account the potential threats to the integrity of the United States financial system posed by foreign consular identification cards.”
The order describes “red flags and typologies” associated with suspicious activity.
Among these are repetitive cash withdrawals, the use of shell companies to conceal true account ownership, and the use of certain platforms for “off-the-books” wage payments.
The “red flags” also encompass the use of an individual taxpayer identification number (ITIN) in place of a Social Security number when opening an account or performing specific banking transactions. This number is accessible to all, irrespective of their immigration status, and is used to file and pay taxes.
Even for legitimate reasons, the move could exacerbate the challenges faced by non-citizens, particularly undocumented immigrants, in obtaining financial services.
The U.S. government has implemented a stringent policy regarding immigration, regardless of whether it is legal or illegal, has restricted the access of immigrants to public services, increased scrutiny for visa and citizenship applications, and detained and deported individuals in mass, including those with lawful immigration status.
Protests across the nation have been incited by extensive immigration operations, which have resulted in the deaths of numerous Americans at the hands of federal agents.
In November, the Treasury Department also disclosed its intention to reclassify specific refundable tax credits as “federal public benefits,” which would limit the eligibility of certain non-citizens who submit taxes in the United States.
“President Trump is taking action to restore integrity to America’s financial system, cracking down on illicit activity that threatens national security and ending the extension of credit to high-risk borrowers that American citizens are forced to subsidize,” a White House fact sheet for the order said.
“Restoring sound underwriting standards puts money back in the pockets of law-abiding Americans,” the order added.
The fact sheet claimed that “gaps in customer identification practices have allowed terrorists, drug traffickers, money launderers, and other criminal networks to exploit U.S. financial institutions to move illicit funds and evade law enforcement,” citing documented Chinese-linked money laundering networks.
The White House also pointed to cases of banks extending mortgages, credit cards, and loans to undocumented immigrants and employers underreporting wages for undocumented employees, arguing that associated “costs are passed on to American consumers in the form of higher fees and interest rates.”
Economists generally attribute higher rates to benchmark rates, which are used to balance inflation and job growth, bank funding costs, and individual factors like borrowers’ credit scores.
According to a study by the left-leaning Urban Institute, lenders issued around 5,000 to 6,000 mortgages to customers with ITINs.
Banks are generally reluctant to lend to customers with ITINs, and Fannie Mae and Freddie Mac are typically disinclined to insure mortgages for borrowers with an ITIN.
The order also directs the Treasury to consider regulatory changes under the Bank Secrecy Act that would enable financial institutions to more readily collect customer data, including immigration status and employment authorization.
Trump has repeatedly accused banks of discriminating against conservatives and has filed a $5 billion lawsuit against JPMorgan Chase and its CEO over the closure of his accounts following the Jan. 6, 2021, Capitol riot.
JPMorgan Chase said in January, “Our company does not close accounts for political or religious reasons. We do close accounts because they create legal or regulatory risk for the company. We regret having to do so, but often rules and regulatory expectations lead us to do so.”
At the same time, the White House has overseen a broader deregulatory push that has benefited firms outside the traditional banking framework, and openly embraced cryptocurrency, with Trump pledging to make the U.S. the “crypto capital of the planet.”
Trump Admin Says It Uncovered $10 Billion Obamacare Fraud Scheme
The Trump administration says it has uncovered what it describes as a massive fraud scheme within the Affordable Care Act.
Members of Trump’s administration allege that roughly $10 billion in taxpayer money was improperly paid out between 2021 and 2024 because of weakened enrollment safeguards under former President Joe Biden.
According to a Department of Health and Human Services report, officials have already removed nearly three million fraudulent or improper Obamacare enrollments and estimate another 2.6 million questionable enrollments remain.
Administration officials say the findings are part of a broader government-wide effort to eliminate fraud, waste, and abuse across federal programs.
The report traces the alleged problems to changes made during the Biden administration that expanded enrollment opportunities while relaxing income verification and eligibility checks.
At the start of Biden’s presidency, approximately 10 million people were enrolled through the Affordable Care Act exchanges. By 2024, enrollment had surged to roughly 22 million.
Federal investigators now believe millions of those enrollments were improper, fraudulent, or created without the knowledge of the individuals involved.
“By our estimate, improper, phantom, and fraudulent enrollment peaked at 5.6 million people in 2025,” the report states.
“We estimate 2.6 million improper and phantom enrollments remain, including over 1 million enrollments without a Social Security number.”
According to the report, several different forms of abuse contributed to the alleged fraud.
Officials say some applicants intentionally understated their income to qualify for larger taxpayer-funded subsidies.
Others allegedly received premium assistance despite failing to meet eligibility requirements.
Investigators also identified what they describe as “phantom enrollments,” in which insurance brokers allegedly enrolled people in Obamacare plans without their knowledge to collect federal commissions.
The report argues that reduced verification requirements made those practices significantly easier to carry out.
Since taking office, the Trump administration says it has restored stricter income verification requirements, ended several special enrollment periods, increased screening for duplicate Medicaid enrollment, and launched investigations into brokers suspected of creating phantom policies.
Officials also say they have strengthened oversight of agents participating in the federal marketplace.
As a result of those efforts, nearly three million enrollments have already been removed from the Affordable Care Act exchanges.
Even after those removals, approximately 19.2 million people remain enrolled.
The administration says its goal is not to reduce legitimate coverage but to ensure taxpayer dollars are being spent only on individuals who actually qualify.
“Preserving the fiscal and programmatic integrity of the ACA Exchanges is key to safeguarding taxpayer-funded resources for those that truly need them,” the report states.
“The federal government paying brokers to enroll individuals without their knowledge is not.”
The report also says the administration will continue pursuing additional enforcement actions against brokers and others accused of exploiting the program.
“The Trump Administration continues to aggressively root out fraud, waste, abuse, and corruption by promulgating new regulations to improve program integrity, investigating suspected improper or fraudulent enrollment, and taking action against agents and brokers committing fraud.”
The findings are likely to reignite debate over the Affordable Care Act and how aggressively eligibility rules should be enforced.
Supporters of the administration argue the report demonstrates that stricter oversight is necessary to protect taxpayers and preserve benefits for those legally entitled to receive them.
Critics of previous verification rollbacks have long warned that loosening enrollment safeguards could increase improper payments and fraud, while supporters of the Biden-era policies argued the changes made healthcare more accessible to eligible Americans, Fox News reported exclusively.
The administration says its investigations remain ongoing, with an estimated 2.6 million additional enrollments still under review as officials continue auditing the federal health insurance exchanges.
Trump has been pushing to replace Obamacare for over a decade, and this may give Republicans enough motivation to actually do something.
