The Financial Crimes Enforcement Network, alongside the FDIC, the OCC, and the National Credit Union Administration, released an advisory outlining 18 specific red-flag indicators. These benchmarks are designed to help banks identify suspicious transactions involving labor brokers and employers who facilitate the employment of individuals lacking legal work authorization.
Treasury Mandates Bank Oversight of Payrolls Tied to Unauthorized Labor
The U.S. Department of the Treasury has directed financial institutions to actively monitor and report identity theft and payroll fraud linked to unauthorized workers. This directive follows a recent executive order from President Donald Trump demanding heightened scrutiny of the banking activities of non-citizens across the American financial system.
Regulators are focusing on industries with high concentrations of such labor, specifically agriculture, construction, hospitality, and domestic services. A primary target for this increased oversight is the use of Individual Taxpayer Identification Numbers, which the agencies now expect banks to scrutinize more aggressively to prevent illicit payroll schemes. By coordinating these efforts with the Internal Revenue Service, the administration aims to tighten compliance and force financial entities to act as frontline enforcers against unlawful employment practices.
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