The U.S. Treasury Department has urged banks to identify and report suspicious activities related to illegal immigrant labor and payroll fraud. The advisory lists 18 red-flag indicators and encourages reporting employers of unauthorized workers to Immigration and Customs Enforcement (ICE).
The U.S. Treasury Department has issued an advisory to financial institutions, urging them to be vigilant in identifying and reporting suspicious activities related to illegal immigrant labor and payroll fraud. The advisory details 18 specific 'red flags' that banks should look for in customer accounts, including the scrutiny of Individual Taxpayer Identification Numbers (ITINs). It encourages banks to report employers who are suspected of hiring or exploiting unauthorized workers to Immigration and Customs Enforcement (ICE). This move signals a broader effort by the Treasury to combat illicit employment practices and potentially disrupt the financial networks supporting them, following President Donald Trump's executive order last month directing financial institutions to increase their scrutiny of non-citizens' banking activities. The advisory was issued by Treasury's Financial Crimes Enforcement Network (FinCEN), Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and the National Credit Union Administration in coordination with the Internal Revenue Service.
This initiative represents a coordinated effort between financial regulators and law enforcement to combat illegal employment and financial fraud, potentially impacting employers in sectors like agriculture, construction, and hospitality.