FinCEN Joint Advisory on Non-Work Authorized Populations and Their Employers and Risks to the U.S. Financial System

The U.S. Department of the Treasury’s (Treasury) Financial Crimes Enforcement Network (FinCEN), jointly with the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and National Credit Union Administration, (collectively, the Agencies), is issuing this Advisory in coordination with the Internal Revenue Service (IRS) to advise financial institutions1 —in particular, banks2 —to be vigilant against fraud schemes and other suspicious or potentially criminal activities involving the unlawful employment of illegal aliens and the associated risks to the integrity of the U.S. financial system.3 Through these schemes, employers can gain an unfair advantage over legitimate U.S. businesses; depress wages; facilitate identity theft of people who are authorized to work in the United States, including American citizens; and steal millions of dollars in Federal and state payroll tax revenue meant for government benefit programs. Non-work authorized populations and their employers often rely on access to the U.S. financial system. In certain instances, the access to financial services and unlawfully obtained wages can be leveraged to facilitate the financing of transnational criminal organizations (TCOs)—several of which have been designated as Foreign Terrorist Organizations (FTOs)—and their global criminal enterprises, including drug trafficking, human trafficking, and other illegal activity in the United States.4