Key facts
- Financial regulators are issuing new guidance on bank lending risk for borrowers not authorized to work in the U.S.
- The guidance emphasizes know-your-customer requirements and credit risk management.
- This action is part of a broader effort by the Trump administration to discourage undocumented individuals from using the U.S. financial system.
- Banks are advised to assess borrowers' willingness and capacity to repay loans, considering potential deportation.
- Previous measures include advisories on identity theft and payroll tax fraud, and reclassification of tax credits.
U.S. financial regulators are issuing new guidance aimed at reminding banks and other financial institutions of their know-your-customer requirements and credit risk management, particularly concerning borrowers who are not authorized to work in the United States. The guidance, announced by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association, advises institutions to consider the potential repayment risks associated with individuals who may face deportation.