Treasury Widens Bank Data Sharing for Immigration Crackdown, Adding ITIN Flags and Real-Time Alerts
Updated
Updated · The Associated Press · Jun 13
Treasury Widens Bank Data Sharing for Immigration Crackdown, Adding ITIN Flags and Real-Time Alerts
3 articles · Updated · The Associated Press · Jun 13
Summary
Friday’s guidance lets U.S. banks share suspected customer information with one another in real time and use broader indicators—including ITINs—to flag possible undocumented immigrants.
The move deepens President Donald Trump’s May order pushing banks to scrutinize customer citizenship without explicitly requiring them to collect citizenship data, a step the industry had lobbied against.
Treasury cast the changes as anti-fraud and anti-money-laundering measures under the Patriot Act and Bank Secrecy Act framework, while Secretary Scott Bessent said banks are not being asked to act as immigration officers.
Banks and critics say the policy edges toward immigration enforcement through financial surveillance, even though banks historically have not tracked citizenship and undocumented borrowers appear to make up only a tiny share of mortgages.
The rules fit a broader administration effort to push undocumented immigrants out of the financial system, a shift advocates warn could increase the number of unbanked people.
How will new data-sharing rules affect financial privacy and access to banking for millions?
What are the real costs of enforcing immigration policy through the financial system?
U.S. Banks Face New Mandates on Immigration Status: 2026 Rules, Compliance Challenges, and Civil Liberties Risks
Overview
In 2026, President Trump signed an executive order that launched a new framework for U.S. banks, requiring them to play a more active role in identifying financial risks linked to non-work authorized populations. This move was framed by the White House as a way to combat fraud and address the risk of unrepaid loans if undocumented borrowers are deported. The order directed the Consumer Financial Protection Bureau to clarify that lenders can consider factors like potential deportation and loss of wages when assessing a borrower's ability to repay. As a result, banks now have explicit permission to factor these risks into their lending decisions.