President Donald Trump has issued an executive order taking action against the Biden-era phenomenon of banks lending or facilitating payments to illegal aliens.
Trump wrote in his May 19 executive order, “Banks and other financial institutions should also be attentive to the credit risks posed by the extension of mortgage and auto loans, credit cards, and other consumer credit to the inadmissible and removable alien population. Many of those borrowers face the possibility of the loss of wages due to removal or their employers’ decisions to comply with immigration law.”
I know far too many wealthy people and employers who have exploited immigration to their profit, and I would sure like to see them — and financial institutions that lend to the aliens — required to hire and lend to Americans instead.
The president had warnings both for employers and lenders who have to deal with or work through banks. “Lending to aliens without legal work authorization or who face a substantial loss-of-wage risk creates a structural ‘ability to repay’ deficiency that undermines the safety and soundness of the national banking system,” he wrote. Trump pointed out that cross-border funds transfers have benefited fentanyl drug traffickers and Chinese money launderers. They have even funded human trafficking and terrorism.
Trump continued, “Additionally, employers who violate immigration law may underreport wages, use mismatched or invalid Social Security numbers and taxpayer identification numbers, or fail to properly withhold or remit payroll taxes. Such schemes can create vulnerabilities within our financial system by obscuring income sources, distorting credit underwriting, and facilitating underground economic activity.”
Read Also: FBI Charges Assistant U.S. Attorney Who Stole Docs in Trump ‘Witch Hunt’ Case
Pollster Scott Rasmussen confirmed to Just the News that the executive order is likely to be popular. “80% of voters believe that illegal immigration is bad for America, and by the way, the flip side of it is 80% believe that legal immigration is good for America,” Rasmussen said.
For those who might scoff at the idea that banks were giving illegal aliens loans, in fact, this was a very real situation under the Biden administration. Housing and Urban Development Secretary Scott Turner last year informed lenders approved under the Federal Housing Administration that taxpayer-backed mortgages could no longer go to illegal aliens. In fact, the Biden administration had established a rule requiring banks to overlook immigration status when evaluating individuals for loans. The Trump administration ended that preposterous rule earlier this year.
The new executive order detailed:
Within 60 days of the date of this order, the Secretary of the Treasury shall issue a formal Advisory to financial institutions regarding the risks associated with the exploitation of the United States financial system by non-work authorized populations and their employers. This Advisory shall describe specific red flags and typologies associated with the following categories of suspicious activity:
(i) evidentiary patterns of payroll tax evasion by employers or labor brokers…
(ii) the utilization of certain foreign-identity documents, nominee accounts, shell companies, or complex “funnel” structures designed to obfuscate [identities]…
(iii) the strategic use of unregistered money services businesses, third-party payment processors, or peer-to-peer platforms to facilitate “off-the-books” wage payments…
(iv) patterns of repetitive, sub-threshold cash withdrawals or deposits that correlate with payroll cycles…
(v) financial activity indicative of labor trafficking or forced labor…
(vi) the use of an individual taxpayer identification number (ITIN) to obtain credit products or open depository accounts where the applicant lacks verified lawful immigration status.
The U.S. Treasury will also be looking to change the implementation of the regulatory Bank Secrecy Act if necessary. Such reform is key to protecting U.S. financial systems.
Editor’s Note: Every single day, here at PJ Media, we will stand up and FIGHT, FIGHT, FIGHT against the radical Left and deliver the conservative reporting our readers deserve.
Help us continue to tell the truth about the Trump administration and its successes. Join PJ Media VIP and use promo code FIGHT to receive 60% off your membership.
Join the conversation as a VIP Member