Fact Sheet: President Donald J. Trump Restores Integrity to America’s Financial System

President Donald J. Trump has signed a comprehensive Executive Order designed to secure the American financial system by tightening customer identification standards, cracking down on international money laundering, and mitigating the credit risks associated with lending to illegal aliens.The administration frames the order as a necessary step to restore "banking integrity" and ensure that American citizens are no longer forced to subsidize high-risk lending or suffer from the exploitation of U.S. banks by criminal networks.The order directs the Treasury Department to modernize the Bank Secrecy Act (BSA) and enhance "Customer Due Diligence" requirements to close gaps that have been exploited by foreign adversaries and cartels:Targeting Global Crime: The administration cited reports that Chinese money laundering networks have moved over $312 billion through U.S. accounts, often to finance human trafficking, while Mexican cartels use similar "red flag" patterns to move fentanyl-related funds.Identifying True Ownership: Financial institutions will be required to more aggressively identify the "true owners" of accounts to prevent the concealment of assets and payroll tax evasion.Restricting Consular IDs: Regulators are directed to account for the security risks posed by foreign consular identification cards, which the administration argues are insufficient for verified legal presence in the U.S. financial system.A major pillar of the order focuses on the structural risks posed by extending credit to individuals without legal work authorization:"Ability-to-Repay" Standards: The Consumer Financial Protection Bureau (CFPB) is directed to clarify that potential deportation and the resulting loss of wages are valid factors that must be considered when determining a borrower’s ability to repay a loan.Mitigating Subsidized Risk: The administration argues that when banks extend mortgages, auto loans, or credit cards to high-risk illegal aliens, the costs of eventual defaults are passed on to law-abiding American consumers via higher interest rates and fees.Sound Underwriting: New guidance will be issued to ensure banks manage the specific credit risks of lending to those without verified legal presence.Building on the "America First" commitment to individual liberty, the order prohibits the use of political or religious litmus tests in banking:Fair Access for All: Regulators are forbidden from promoting policies that allow banks to deny services based on a customer's political beliefs, religious beliefs, or involvement in lawful business activities (such as the firearms or energy industries).Ending Choke Point 2.0: The administration has officially terminated "Operation Choke Point 2.0," ending regulatory efforts designed to deny banking services to the digital assets (crypto) industry.The President reaffirmed his commitment to making the U.S. the "Financial Innovation Capital of the World":The GENIUS Act: Highlighting the recently signed GENIUS Act, the administration is paving the way for the U.S. to lead the global digital currency revolution.Retirement Flexibility: A previous Executive Order was highlighted that allows 401(k) investors to diversify their portfolios with alternative assets, seeking higher returns for American retirees.Conclusion:By combining aggressive anti-money laundering enforcement with a return to strict, common-sense underwriting standards, President Trump intends to "restore integrity" to the U.S. financial system. The administration concludes that these actions will lower costs for American families, secure the homeland from cartel finance, and cement the United States as the global leader in financial technology.1. Strengthening Anti-Money Laundering (AML) Protocols2. Addressing Lending Risks and Illegal Immigration3. Ensuring Fair Access and Ending "De-Banking"4. Leading the Global Digital Revolution