NEW YORK CITY, New York: The U.S. Treasury Department has expanded guidance for banks as part of the Trump administration's broader immigration enforcement efforts, introducing measures that allow financial institutions to share customer information more quickly and identify activities that may be linked to immigration-related risks.

The changes are designed to draw banks more deeply into the administration's campaign against undocumented immigration while framing the effort as a crackdown on fraud, money laundering and other financial crimes.

Treasury Secretary Scott Bessent outlined the new approach in remarks prepared for a banking conference in Houston. "The information in your purview can help stop a cartel financier, disrupt a money laundering network, uncover labor exploitation, or protect taxpayers from fraud," Bessent said.

The measures stem from an executive order signed by President Donald Trump in May directing banks, regulators and government agencies to take a closer look at the citizenship status of customers and identify potential signs that people without legal status are accessing financial services.

While the executive order stopped short of requiring banks to collect citizenship information, it instructed regulators to strengthen oversight in areas linked to immigration-related fraud risks.

Under the updated guidance, banks can now share information with one another more freely and in real time when they suspect fraudulent or illicit activity.

The administration has also broadened the circumstances under which banks may exchange information. These now include indicators historically associated with immigration status, such as the use of an individual taxpayer identification number, or ITIN, which is often used by undocumented immigrants when filing taxes or seeking employment.

"The advisory does not ask banks to become immigration officers," Bessent said. "It asks banks to do what they do best: know their customers, identify risk, recognize suspicious patterns, and report illicit activity when they see it."

The banking industry has expressed concerns about becoming involved in immigration enforcement, noting that banks have not traditionally collected citizenship information from customers. Industry representatives have argued that doing so would require significant operational changes and additional paperwork.

The Treasury Department recently expanded the reasons banks may file Suspicious Activity Reports, or SARs, to include cases involving potential undocumented workers.

"The administration is saying they don't want banks to be immigration officials, but they are trying to get as close to the line as possible," said Nicholas Anthony of the Cato Institute.

The White House has argued that undocumented immigrants may pose risks to the financial system if they obtain loans that cannot be repaid because of deportation.

Advocates for immigrants have warned that stricter scrutiny could push undocumented individuals out of the formal banking system, increasing the number of people who are unbanked and relying on cash-based transactions.

The administration has also taken other steps affecting immigrant access to financial benefits, including changes to eligibility for certain refundable tax credits.