US president Donald Trump has signed a new executive order directing the Treasury Department to crack down on bank accounts that the administration says are being used to support illegal immigration and other criminal activities.
Trump announced the move in a post on Truth Social on June 2, saying the order is aimed at stopping banks, credit card companies and other financial institutions from being used to move money connected to human smuggling, drug trafficking, illegal immigration and criminal cartels.
The president argued that illegal immigrants and foreign fraudsters are costing American taxpayers billions of dollars every year.
“Illegal immigrants and foreign fraudsters steal billions every year from the American taxpayer. As part of my administration’s historic effort to end fraud and reverse mass illegal immigration, I recently signed a powerful new Executive Order,” began a lengthy Truth Social post from the President.
Trump signs order targeting bank accounts linked to illegal immigration
According to Trump, the order gives the Treasury Department the authority to target financial accounts linked to illegal immigration and criminal networks. He said bank accounts being used to facilitate illegal immigration or hold government benefits received by undocumented immigrants could be shut down. The funds in those accounts could also face seizure or forfeiture.
“Bank Accounts being used to enable Illegal Immigration, or to store the Welfare received by Illegal Aliens, will be shut down,” Trump said. According to Trump, access to the US financial system should be limited to people who are legally present in the country and engaged in lawful activities.
“Access to our Nation’s Financial Systems must be limited to those who have a Legal Right to be here, and who are engaged in Lawful and Legitimate Commerce,” he wrote.
Trump also claimed the order could help stop billions of dollars from leaving the United States through criminal operations.
— Rapid Response 47 (@RapidResponse47) June 2, 2026
Treasury to focus on financial networks
The White House and the Treasury Department say criminal organisations often rely on the US financial system to move, hide and transfer illegal funds. The new executive order is designed to target those networks by cutting off access to banks and other financial institutions.
The administration has highlighted previous cases as examples of how criminal groups allegedly use financial channels to move money.
In March, the Treasury Department imposed sanctions on a money laundering network linked to the Sinaloa Cartel. Officials alleged that drug traffickers converted profits from fentanyl sales into cryptocurrency before transferring the money to cartel operators.
At the time, Treasury Secretary Scott Bessent said the administration would continue pursuing such operations. “Treasury will continue to target terrorist cartels and their fentanyl trafficking networks,” Bessent said in March 2026.
Large-scale money laundering cases in focus
Federal officials have repeatedly warned about the scale of money laundering activities tied to international criminal organisations. According to Treasury and law enforcement authorities, Chinese money laundering networks allegedly moved more than $312 billion through US-based financial accounts.
The administration argued that stronger oversight of financial institutions is needed to prevent criminal groups from using the American banking system.
Immigration and labor trafficking concerns
In April 2025, US Immigration and Customs Enforcement (ICE) seized assets connected to a $126 million illegal staffing and money laundering scheme in Ohio. According to ICE, the operation used around 40 shell companies to hire and house undocumented workers, many of whom were allegedly smuggled into the United States through Mexico.
Authorities said the network moved millions of dollars through bank accounts, real estate transactions and luxury goods purchases.
Trump says measure will help reverse illegal immigration
In his Truth Social post, Trump said the executive order is part of a wider effort by his administration to reduce illegal immigration and combat fraud. He argued that undocumented immigrants should not be able to gain unrestricted access to the US financial system using documents such as state-issued driver’s licenses or immigration paperwork.
“It is not ludicrous, but profoundly dangerous, that any Illegal Alien can simply present a Blue State Driver’s License, or Biden Border Document, and have unrestricted access to the U.S. Financial System,” Trump wrote.
The president also referred to anti-ICE protests, saying they would not weaken the administration’s resolve. “This also sends a clear message to the anti-ICE rioters that your violent disruptions are only strengthening our resolve,” he said.
Trump described the executive order as one of the strongest measures his administration has taken to address illegal immigration.
“My Executive Order will also allow us to stop Billions in leaving our Country in all manner of criminal activity,” he wrote. “It has been said this measure we are taking is the most effective means of reversing Biden’s Border Invasion. We shall soon find out!”
The executive order is expected to put pressure on banks and other financial institutions to monitor accounts and transactions that authorities believe may be linked to illegal immigration, human smuggling, drug trafficking and other criminal activity.