FinCEN Flags 12 Red Signs of Unauthorized Worker Payroll Schemes at Banks
Updated
Updated · The Associated Press · Jun 5
FinCEN Flags 12 Red Signs of Unauthorized Worker Payroll Schemes at Banks
3 articles · Updated · The Associated Press · Jun 5
Summary
FinCEN on Friday told banks to watch for more than a dozen red flags linked to payroll schemes involving unauthorized workers, including signs of identity theft, payroll tax fraud and money laundering.
The advisory is the Trump administration’s latest immigration crackdown and follows a May executive order directing regulators and agencies to scrutinize whether people without legal status are opening accounts or getting loans or credit cards.
Banks had feared a broader mandate to collect customers’ citizenship information, but the White House stopped short of requiring that step after industry lobbying over cost and paperwork.
Treasury said the guidance is meant to disrupt access to the U.S. financial system without triggering blanket debanking, even though banks historically have not collected citizenship or immigration-status data.