WASHINGTON (AP) — The Trump administration is taking additional steps to prevent people living in the U.S. illegally from using the nation’s banking system, cracking down on financial institutions that are lending money to them.On Monday, a group of financial regulators is set to issue guidance intended to remind banks and other financial institutions of their know-your-customer requirements with respect to credit risk management, particularly as it relates to borrowers who are not authorized to work in the U.S.The newest warning is one of several measures the Trump administration has taken to discourage people in the U.S. illegally from interacting with the larger U.S. financial system. The measures, over the last nine months, are designed to strongly encourage banks to remove them as customers while not expressly mandating that the banks do so. The joint announcement is planned from three of the nation’s bank regulators: the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association. The agencies said that banks should take into account that people in the U.S. illegally may not be able to repay a loan because of deportation. In short, they say, people working in the U.S. illegally pose overall risk to the financial system.
Regulators issue new guidance on bank lending risk tied to borrowers living illegally in US
The Trump administration is cracking down on banks lending to people living in the U.S. illegally. On Monday, financial regulators planned to issue guidance reminding banks of their know-your-customer requirements.









