Restoring Integrity to America's Financial System
1. Purpose
Executive Order 14406 aims to restore the integrity of America's financial system by combating fraud and abuse related to non-work authorized populations, ensuring financial institutions are protected from associated risks.
2. Key Actions And Directives
- Issue Advisory to Financial Institutions: The Secretary of the Treasury must issue an Advisory outlining risks and red flags associated with non-work authorized individuals within 60 days.
- Strengthen Customer Due Diligence: Propose changes to enhance risk-based customer due diligence requirements for financial institutions.
- Involve Federal Regulators: Federal regulators must consult and provide guidance on financial regulations addressing the risks from non-work authorized populations.
3. Important Points
- Addressing Financial Fraud Risks: The order specifically targets risks such as financial fraud, narcotics trafficking, and human trafficking linked to non-work authorized individuals.
- Enhanced Due Diligence Requirements: Triggers for enhanced due diligence may include transactions involving individual taxpayer identification numbers (ITINs), especially concerning immigration status.
- Authority Preservation: The order reaffirms that it does not interfere with the existing authority of federal agencies, including the Office of Management and Budget.
- Suspicious Activities Identified: The Advisory must highlight suspicious activities that include payroll tax evasion and unregistered money services businesses.
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