Treasury warns banks of ‘red flags’ tied to customers in the US illegally

WASHINGTON (AP) — The Treasury’s financial crimes unit is warning banks about the risks of serving people living in the country illegally. This is part of the Trump administration’s efforts to tighten immigration controls. The Financial Crimes Enforcement Network, or FinCEN, issued guidance Friday following an executive order by President Trump in May. The order requires banks to scrutinize customers’ citizenship more closely. However, it is less aggressive than initially expected, as it does not mandate collecting citizenship information. Treasury Secretary Scott Bessent emphasized preventing illegal aliens from exploiting financial institutions. Banks are urged to watch for red flags like identity theft and payroll fraud.