Trump orders all US banks to "audit non-citizen accounts," are foreign nationals' accounts at risk?

Trump signed an executive order on May 19 to "Restore Integrity to America’s Financial System," requiring the Treasury Department to issue guidance to financial institutions to strengthen scrutiny of non-citizen banking activities. Behaviors such as opening accounts with an ITIN, using shell companies to conceal account ownership, and structuring transactions to evade the Bank Secrecy Act (BSA) have been listed as suspicious red flags. (Previous coverage: Trump drops $10 billion lawsuit in exchange for lifetime IRS audit immunity: $1.8 billion anti-weaponization fund to follow) (Background: Standard Chartered announces 15% reduction in back-office staff by 2030; CEO admits to replacing "low-value labor" with AI) Key Highlights - Trump signed an executive order on May 19 requiring banks to strengthen due diligence on non-citizen accounts. - ITIN account openings, shell companies, and structuring transactions are listed as suspicious red flags, with new regulations expected within 60-180 days. - "Potential for deportation" is to be included in loan repayment capacity assessments, though banks are not mandated to collect proof of citizenship. The full name of the order is "Restoring Integrity to America’s Financial System," directing the Treasury Department, the Consumer Financial Protection Bureau (CFPB), and federal financial regulators to issue new rules within 60 to 180 days. The core requirement is for financial institutions to identify and report three types of suspicious activities: payroll tax evasion, concealment of true account ownership, and off-the-books wage payments. Specific "red flags" listed in the White House fact sheet include: using an ITIN (Individual Taxpayer Identification Number) instead of a Social Security Number to open accounts, using shell companies to mask the true beneficial owners of accounts, and structuring transactions to circumvent the reporting thresholds of the Bank Secrecy Act (BSA). Financial institutions are also required to strengthen Know Your Customer (KYC) due diligence for individuals "without work authorization" and their employers, and to incorporate "potential for deportation and loss of income" into assessments of loan repayment capacity. No Mandatory Collection of Citizenship Status, but Consequences Apply The text of the executive order does not directly require banks to collect proof of citizenship or legal residency, a step back from more aggressive versions previously considered by the White House. However, industry lawyers point out that the practical effect is similar; to avoid regulatory risk, banks will almost certainly add citizenship-related fields to their KYC questionnaires. The order uses the language of "voluntary cooperation" while warning that institutions that ignore "significant immigration risks" may face enforcement actions. This effectively turns banks into an extension of immigration enforcement. If undocumented immigrant clients are shut out of the formal financial system due to the new rules, they are likely to turn to the unregulated cash economy, increasing their risk of encountering predatory lending and wage theft. It is speculated that many non-U.S. citizen bank depositors may be placed on certain watchlists. Polymarket Betting: How Many People Will Trump Deport in 2026? The "Trump 2026 Deportation Numbers" prediction market on Polymarket currently has ten ranges being traded. The 400,000-500,000 range leads with an implied probability of 42%, followed by 300,000-400,000 (31.5%) and 200,000-300,000 (10.5%). The range for over 1 million people sits at only 0.8%, reflecting a market consensus that mass deportations will not reach the figures touted during the campaign. The bank scrutiny executive order and deportation numbers are two ends of the same policy chain. FAQ Who will be affected by Trump's bank scrutiny executive order? It primarily affects non-citizens who use an ITIN (rather than a Social Security Number) to open bank accounts in the U.S. The order requires banks to strengthen KYC scrutiny and report suspicious activities, but it does not mandate the collection of proof of citizenship; the actual impact depends on how individual banks interpret compliance. What does this have to do with the cryptocurrency market? Undocumented immigrants excluded from the formal banking system may turn to unregulated financial channels, including the cash economy and cryptocurrency. The strengthening of BSA enforcement under the executive order may also lead to tighter scrutiny standards for non-citizen accounts on cryptocurrency exchanges.