Trump orders all U.S. banks to "investigate non-citizen businesses"; Are foreigner accounts at risk?

Trump signed an executive order on 5/19 to "Restore the Integrity of America's Financial System," requiring the Treasury Department to issue guidance to financial institutions to strengthen scrutiny of non-citizen banking activities. Actions such as opening accounts with Individual Taxpayer Identification Numbers (ITIN), shell companies concealing account holders' identities, and splitting transactions to evade the Bank Secrecy Act (BSA) are now flagged as suspicious red flags.
(Background summary: Trump withdrew a billion-dollar lawsuit in exchange for the IRS being permanently barred from audits: $1.8 billion anti-militarization fund followed)
(Additional background: Standard Chartered Bank announced it will cut 15% of its back-office staff by 2030! CEO admits: replacing "low-value labor" with AI)

Key Highlights

• Trump signed the executive order on 5/19, requiring banks to enhance due diligence on non-citizen accounts
• ITIN accounts, shell companies, and transaction splitting are flagged as suspicious, with new regulations expected within 60-180 days
• "Potential deportation" included in loan repayment capacity assessments, but banks are not mandated to collect citizen identification

The full name of the executive order is "Restoring Integrity to America’s Financial System," instructing the Treasury, Consumer Financial Protection Bureau (CFPB), and federal regulators to implement new rules within 60 to 180 days. The core requirement is for financial institutions to identify and report three types of suspicious activities: evading wage taxes, concealing true account ownership, and off-the-books wage payments.

Specific "red flags" listed by the White House fact sheet include: opening accounts with ITIN instead of Social Security Numbers, using shell companies to hide true ownership, and splitting transactions to evade BSA reporting thresholds. Financial institutions are also asked to strengthen customer due diligence (KYC) for "unauthorized work" individuals and their employers, and to consider "potential deportation and income loss" as factors in loan repayment capacity assessments.

No mandatory collection of citizen ID, but consequences at your own risk

The executive order text does not directly require banks to collect customer citizenship or legal residence proof, which is a step back from the more aggressive version initially considered by the White House. However, industry lawyers note that the practical effect is similar—banks will almost certainly add fields related to citizenship status in KYC questionnaires to mitigate regulatory risks. The wording states "voluntary cooperation," but also warns that institutions ignoring "significant immigration risks" may face enforcement actions.

This effectively turns banks into extensions of immigration enforcement. Undocumented immigrants who are blocked from accessing formal financial systems due to the new rules may turn to unregulated cash economies, increasing risks of predatory loans and wage theft.

It is speculated that many non-U.S. bank account holders may be placed on some watchlists.

Polymarket Bet: How many people will Trump deport in 2026?

On Polymarket, the "Number of people deported by Trump in 2026" prediction market currently has ten ranges trading. The highest implied probability is for the 400,000-500k range at 42%, followed by 300,000-400,000 (31.5%) and 200,000-300,000 (10.5%). The over 1 million range has only 0.8%, indicating the market consensus that large-scale deportations will not reach the numbers Trump claimed during his campaign.

Will Trump deport 400-500k people?
Yes 42% · No 58%

View full market & trade on Polymarket

The bank review executive order and deportation figures are two ends of the same policy chain.

Frequently Asked Questions

Who will be affected by Trump’s bank review executive order?

Primarily non-citizens using ITIN (instead of Social Security Numbers) to open bank accounts in the U.S. The order requires banks to strengthen KYC procedures and report suspicious activities, but does not mandate collecting citizen identification, so actual impacts depend on each bank’s compliance interpretation.

What does this have to do with the cryptocurrency market?

Undocumented immigrants excluded from formal banking may turn to unregulated financial channels, including cash economies and cryptocurrencies. The strengthened BSA enforcement could also tighten scrutiny of non-citizen accounts at crypto exchanges.