WASHINGTON (Diya TV) — President Donald Trump said bank accounts used to support illegal immigration or hold welfare benefits received by undocumented migrants could be shut down under a new executive order aimed at strengthening oversight of the U.S. financial system.
Trump announced in a post on Truth Social. He said his administration wants to stop criminal organizations, human smugglers, drug traffickers, and foreign fraudsters from using American financial institutions. The move is part of a broader effort to crack down on illegal immigration and financial crimes. The administration argues that stronger controls will help protect taxpayers and prevent abuse of the banking system.
Trump said access to the U.S. financial system should be limited to people who have a legal right to be in the country and who engage in lawful business activities. In his post, he claimed undocumented migrants and foreign criminals cost taxpayers billions of dollars each year. He said the administration would take action against accounts used to facilitate illegal immigration or store government benefits received by people without legal immigration status.
According to Trump, authorities could freeze or close such accounts. He also said the government could seize funds connected to unlawful activities and return the money to taxpayers when permitted under the law. Trump described the measure as an important part of his immigration enforcement agenda. He said it would help stop billions of dollars from flowing through criminal networks and leaving the United States.
The announcement follows Trump’s signing of an executive order titled “Restoring Integrity to America’s Financial System.” The White House unveiled the order in May.
A White House fact sheet said the order directs the Treasury Department and federal financial regulators to strengthen oversight of banks and other financial institutions. Federal agencies will review existing customer identification rules and due diligence requirements. The administration says the review will help prevent criminals from exploiting weaknesses in the financial system. Officials said human smuggling organizations, money launderers, and drug trafficking networks often rely on financial channels to move money. The administration believes stronger monitoring can disrupt those operations.
The executive order instructs the Treasury secretary to develop guidance for banks and financial institutions. The guidance will help identify warning signs linked to labor trafficking, payroll tax evasion, hidden account ownership structures, and off-the-books wage payments. Federal officials also want financial institutions to improve their ability to detect suspicious transactions tied to illegal activities. The administration says better oversight will strengthen compliance efforts and reduce opportunities for financial fraud.
The White House said federal agencies will also review risks connected to lending money to individuals who do not have legal authorization to work in the United States. Under the executive order, federal banking regulators and the Consumer Financial Protection Bureau will examine whether current lending guidance adequately addresses situations where immigration enforcement actions could affect a borrower’s income.
Administration officials argue that lenders should consider repayment risks when evaluating credit applications. They say a person’s employment status may affect their ability to meet loan obligations. The review could lead to updated recommendations for banks and lenders in the future.
