Treasury Sec. Announces Crackdown on Banks That Provide Services to Illegal Aliens
By Kyle Becker | 6:35 PM on August 07, 2026
The opinions expressed by contributors are their own and do not necessarily represent the views of RedState.com.
Treasury Secretary Scott Bessent put banks on notice Thursday, warning that the Trump administration will not tolerate banks providing risky financial services to illegal aliens.
Speaking to bankers in Phoenix, Arizona, Bessent said the administration is bringing its border enforcement agenda into the financial system, where banks are being called on to identify suspicious activity and protect their institutions from abuse.
“This Administration will not tolerate blatant abuse of our financial system, nor will it permit risks posed by the extension of financial services to illegal aliens,” Bessent said.
The warning comes as the Treasury Department and federal banking regulators increase scrutiny of financial activity connected to people who are not legally authorized to work in the United States.
Bessent pointed to an executive order directing Treasury and other regulators to protect the financial system against fraud and abuse, improve detection of illicit activity, and prevent financial institutions from facilitating unlawful conduct involving unauthorized workers.
“Taken together, these actions reflect a broader effort to deny unlawful activity any foothold,” Bessent said.
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READ MORE: https://redstate.com/kyle-becker/2026/08/07/treasury-sec-drops-the-hammer-banks-will-be-punished-for-serving-illegal-aliens-n2205322
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