Documents › Executive orders › 14406
Executive Order 14406
Restoring Integrity to America's Financial System
Signed May 19, 2026, printed at 91 FR 30479. 4 sections of substance, 1,360 words.
This order is about banks. It says rules have grown too heavy. It names the agencies that must act.
Sec. 1. Purpose
America's financial institutions serve a critical role in safeguarding the American people against financial fraud and abuse. My Administration has taken significant steps to lower the costs of providing financial services for Americans and reduce unnecessary and burdensome Federal regulations that restrain economic growth and hamper the competitiveness of financial service providers nationwide. However, it has long been the policy of the United States to adopt tailored measures to safeguard our financial system from illicit use and promote safe and sound lending and other practices by financial institutions. My Administration will not tolerate national security and public safety risks caused by illicit cross-border financial activity, nor will it permit risks to our financial system posed by the extension of credit or financial services to the inadmissible and removable alien
America's financial institutions serve a critical role in safeguarding the American people against financial fraud and abuse. My Administration has taken significant steps to lower the costs of providing financial services for Americans and reduce unnecessary and burdensome Federal regulations that restrain economic growth and hamper the competitiveness of financial service providers nationwide. However, it has long been the policy of the United States to adopt tailored measures to safeguard our financial system from illicit use and promote safe and sound lending and other practices by financial institutions. My Administration will not tolerate national security and public safety risks caused by illicit cross-border financial activity, nor will it permit risks to our financial system posed by the extension of credit or financial services to the inadmissible and removable alien
This states the aim. It says banks help guard people against fraud. It says the administration has cut costs and rules. It says heavy rules slow growth. It also says the system must be kept safe from illicit use. It says lending must stay sound. It names cross border money flows as a risk. It names credit given to people here unlawfully.
Sec. 2. Definition
The term ``Federal functional financial regulator'' means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. [[Page 30480]]
The term ``Federal functional financial regulator'' means the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. [[Page 30480]]
This defines one term. It names four bodies that watch over money firms. The Federal Reserve board is one. The bank office in Treasury is another. The body that insures deposits is a third. The one that oversees credit unions is the fourth.
Sec. 3. Safeguarding Against Fraud and Abuse
(a) Within 60 days of the date of this order, the Secretary of the Treasury shall issue a formal Advisory to financial institutions regarding the risks associated with the exploitation of the United States financial system by non-work authorized populations and their employers. This Advisory shall describe specific red flags and typologies associated with the following categories of suspicious activity: (i) evidentiary patterns of payroll tax evasion by employers or labor brokers, including the systematic failure to withhold or remit Federal employment taxes for non-work authorized individuals; (ii) the utilization of certain foreign-identity documents, nominee accounts, shell companies, or complex ``funnel'' structures designed to obfuscate the identity of the ultimate beneficial owners or conceal the true nature of payroll disbursements; (iii) the strategic use of unregistered money
(a) Within 60 days of the date of this order, the Secretary of the Treasury shall issue a formal Advisory to financial institutions regarding the risks associated with the exploitation of the United States financial system by non-work authorized populations and their employers. This Advisory shall describe specific red flags and typologies associated with the following categories of suspicious activity: (i) evidentiary patterns of payroll tax evasion by employers or labor brokers, including the systematic failure to withhold or remit Federal employment taxes for non-work authorized individuals; (ii) the utilization of certain foreign-identity documents, nominee accounts, shell companies, or complex ``funnel'' structures designed to obfuscate the identity of the ultimate beneficial owners or conceal the true nature of payroll disbursements; (iii) the strategic use of unregistered money
This orders a warning to banks. Treasury has 60 days. The notice covers risks from workers with no work permit. Their employers are covered too. It must list warning signs. Payroll tax dodging is one. Failing to withhold federal taxes counts. Fake identity papers are another. So are shell firms. So are unregistered money services.
Sec. 4. Addressing Structural Credit Risks
(a) Within 60 days of the date of this order, the Consumer Financial Protection Bureau shall consider clarifying that potential deportation and loss of wages are factors that could adversely affect a non-work authorized borrower's ability to repay an extension of credit under the ``ability-to-repay'' standards in 12 CFR Part 1026 [[Page 30481]] and its appendices and supplements, and that lenders may consider such factors as part of a reasonable and good-faith underwriting determination. (b) Within 60 days of the date of this order, each appropriate Federal functional financial regulator shall issue guidance regarding the management of the potential credit risks posed by the non-work authorized population.
(a) Within 60 days of the date of this order, the Consumer Financial Protection Bureau shall consider clarifying that potential deportation and loss of wages are factors that could adversely affect a non-work authorized borrower's ability to repay an extension of credit under the ``ability-to-repay'' standards in 12 CFR Part 1026 [[Page 30481]] and its appendices and supplements, and that lenders may consider such factors as part of a reasonable and good-faith underwriting determination. (b) Within 60 days of the date of this order, each appropriate Federal functional financial regulator shall issue guidance regarding the management of the potential credit risks posed by the non-work authorized population.
This covers lending risk. The consumer bureau has 60 days. It must weigh a new note to lenders. Being sent home could hurt a borrower's ability to pay. Lost wages could too. A repayment rule sets the test. Lenders could weigh those facts in good faith. Each money regulator has 60 days for its own guidance.
Sec. 5. General Provisions
Every order carries this. It is not what the order does.
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) The costs for publication of this order shall be borne by the Department of the Treasury. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, May 19, 2026. [FR Doc.
(a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. (d) The costs for publication of this order shall be borne by the Department of the Treasury. <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT> (Presidential Sig.) THE WHITE HOUSE, May 19, 2026. [FR Doc.
This is the closing clause that nearly every order carries. It says the order does not change what the law already allows. It also says no one can sue to enforce it.
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