US Banking Agencies Issue 18 Red Flags on Unlawful Noncitizen Employment Fraud
Updated
Updated · mcdermottlaw.com · Aug 17
US Banking Agencies Issue 18 Red Flags on Unlawful Noncitizen Employment Fraud
3 articles · Updated · mcdermottlaw.com · Aug 17
Summary
Eighteen red flags in a joint FinCEN, FDIC, OCC and NCUA advisory tell financial institutions how to spot suspicious activity tied to unlawful employment of noncitizens.
Two fraud typologies drive the alert: identity theft using stolen SSNs and documents to obtain jobs, and payroll schemes that hide off-the-books workers through shell companies, cash couriers, checks or peer-to-peer transfers.
Relevant industries include agriculture, construction, domestic service, hospitality and staffing, where banks are told to watch for mismatched SSA records, large recurring check deposits, structured cash withdrawals and payroll activity that does not fit business size.
EO 14406, issued May 19, ordered Treasury to publish the advisory, and institutions filing suspicious activity reports on such conduct should use the term FINANCIALINTEGRITY-2026-A002.
The guidance also urges tighter due diligence on ITIN and SSN use and signals broader scrutiny of customer identification and anti-fraud controls, though FinCEN has not yet proposed new CDD or CIP rules.