Trump Orders Sweeping Measures to Combat Illicit Finance in US System

President Trump Targets Illicit Financial Activities and Boosts FinTech Collaboration

On Tuesday, May 19, 2026, U.S. President Donald Trump enacted a significant executive order designed to bolster defenses against illicit financial activities plaguing the American financial system. The White House confirmed that this directive mandates the U.S. Treasury Secretary to issue a comprehensive advisory to financial institutions.

This advisory will be crucial in identifying key indicators and suspicious transaction patterns. Among the illicit activities specifically targeted are payroll tax evasion, methods used to conceal the true ownership of accounts, and labor trafficking. This move underscores a concerted effort by the administration to enhance transparency and accountability within financial operations across the nation.

Furthermore, the executive order instructs the Treasury Secretary to propose modifications to the existing Bank Secrecy Act regulations. These proposed changes are intended to fortify customer due diligence requirements, enabling financial institutions to conduct more thorough vetting processes. The order also seeks to expand the authority to gather additional information from customers when such data is deemed necessary for investigative or compliance purposes, as stated by the White House.

In a separate but related development on the same day, President Trump also signed another executive order. This second directive is aimed at streamlining regulations and promoting greater collaboration between various entities within the financial sector. Specifically, it seeks to foster a more integrated environment for financial technology (FinTech) firms, federally regulated financial institutions, and federal financial regulators. This initiative is expected to encourage innovation while maintaining necessary oversight, facilitating a more dynamic and responsive financial ecosystem, according to information released by the White House.

The dual executive orders signify a strategic approach by the Trump administration to address both the challenges of financial crime and the opportunities presented by technological advancements in finance. The measures are expected to have a far-reaching impact on how financial transactions are monitored, how regulatory compliance is enforced, and how financial services evolve in the United States.