Trump Signs Executive Orders Targeting Immigration & Fintech
Order 1: Shielding the Financial System from Undocumented Immigrants
President Donald Trump signed two executive orders on Tuesday. The first order is designed to insulate the US financial system from undocumented immigrants.
The order directs Treasury Secretary Scott Bessent to advise financial institutions on how undocumented immigrants might attempt to open accounts or receive loans.
The directive tasks Bessent with working alongside federal regulators to propose changes to Bank Secrecy Act regulations. These changes aim to strengthen customer due diligence and customer identification program requirements.
Key Provisions of the Order:
- CFPB Rulemaking: The order asks the Consumer Financial Protection Bureau (CFPB) to consider modifying its rules. Specifically, it calls for deportation and wage-loss to be recognized as factors affecting loan repayment ability.
- Risk Guidance: Regulators are instructed to issue guidance on managing credit risks specifically associated with undocumented immigrants.
- Existing Action: The CFPB has already advanced a proposed rule titled "statement on ability to repay and immigration status."
Order 2: Expanding Fintech Access to Payment Systems
The second executive order takes a different focus, aiming to expand fintech firms' access to the Federal Reserve’s payment rails. This move is expected to increase competition and modernize payment infrastructure.