Donald Trump signed a new executive order aimed at strengthening U.S. financial safeguards and addressing illicit financial activity across the banking system.
The order directs the U.S. Department of the Treasury and federal financial regulators to update guidance for banks on detecting and preventing money laundering, terrorism financing, and related crimes.
It highlights key “red flags” for institutions to monitor, including unusual cash withdrawal patterns, efforts to conceal account ownership through complex corporate structures, and payment systems that bypass traditional payroll channels.
The measure also focuses on the use of Individual Taxpayer Identification Numbers (ITINs), issued by the Internal Revenue Service for individuals not eligible for Social Security numbers, encouraging regulators to factor them into risk-assessment procedures.
Supporters argue the policy will strengthen financial oversight, improve identity verification standards, and enhance national security by reducing opportunities for criminal organizations to exploit the financial system.
Critics, however, warn that the changes could make banking more difficult for some non-citizens and individuals using financial services for legitimate purposes, raising concerns about financial inclusion.
The debate centers on balancing stronger enforcement against illicit finance with maintaining access to essential banking services for lawful users within the broader economy.
Overall, the executive order reflects an ongoing push to tighten compliance standards while reshaping how financial institutions monitor risk and safeguard system integrity.