Treasury Department Issues Advisory to Banks on Identifying Payroll Schemes Involving Unauthorized Workers
The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of the Treasury, has issued an advisory to banks to be vigilant against identity theft, payroll tax fraud, and money laundering schemes linked to the employment of unauthorized workers. This advisory follows an executive order signed by President Trump, which requires banks to scrutinize the citizenship status of their customers. The order aims to prevent individuals without legal status from accessing the U.S. financial system. Although the order stops short of mandating banks to collect citizenship information, it encourages financial institutions to identify 'red flags' that may indicate illegal activity. The banking industry had previously lobbied against a more stringent mandate, citing potential costs and administrative burdens. 
