Regulatory Alerts2026-06-05
Added · Updated
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 Financial Crimes Enforcement Network (FinCEN), jointly with the FDIC, OCC, NCUA, and coordinated with the IRS, has issued an advisory directing financial institutions to enhance vigilance against fraud and suspicious activities linked to the unlawful employment of non-work authorized populations. The document details how complicit employers and labor brokers exploit identity theft, fraudulent I-9 documentation, and off-the-books payroll schemes to evade taxes, depress wages, and launder funds through shell companies and unlicensed money services businesses. Financial institutions are instructed to monitor for these typologies, file Suspicious Activity Reports referencing the advisory code, and mitigate risks associated with transnational criminal organizations, human trafficking, and significant federal payroll tax evasion.