Key facts
- Treasury Department issued an advisory to banks regarding illegal employment schemes.
- The advisory urges banks to report 'red flags' for payroll fraud involving illegal immigrant labor.
- Banks are encouraged to report employers hiring or exploiting unauthorized workers to ICE.
- The advisory lists 18 red-flag indicators and advises scrutiny of ITINs.
- This follows President Trump's executive order on scrutinizing non-citizens' banking activities.
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.