Trump signs new order to shut down bank accounts – Yahoo Finance Australia
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President Donald Trump has signed an executive order directing the Treasury Department to shut down bank accounts used to support illegal immigration.
Trump announced the order in a June 2 Truth Social post, saying it targets the banks, credit card companies, and other financial institutions that criminals use to move money tied to human smuggling, drug trafficking, illegal immigration, and cartels.
“Illegal Immigrants and Foreign Fraudsters steal BILLIONS every year from the American Taxpayer.” posted President Donald Trump, Truth Social, June 2.
Under the order, Trump said, accounts used to support illegal immigration or to hold government benefits paid to undocumented immigrants could be closed, seized, or forfeited.
“Bank Accounts being used to enable Illegal Immigration, or to store the Welfare received by Illegal Aliens, will be shut down.”
Trump argued the measure would stop billions of dollars from flowing out of the United States through criminal networks.
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The White House and Treasury say criminal organizations run their money through the U.S. financial system to move and hide illicit funds. The new order tries to cut off that access at the bank level.
Just for context, in March, the department sanctioned a Sinaloa Cartel-affiliated money laundering network, alleging that traffickers converted fentanyl proceeds into cryptocurrency before routing the funds to cartel operators.
“Treasury will continue to target terrorist cartels and their fentanyl trafficking networks.” said Treasury Secretary Scott Bessent in March 2026.
The scale of the broader problem is large. Treasury and law enforcement have pointed to Chinese money laundering networks that allegedly moved more than $312 billion through U.S.-based accounts.
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Officials have also tied the financial system to labor trafficking.
In April 2025, U.S. Immigration and Customs Enforcement seized assets linked to a suspected $126 million illegal staffing and laundering operation in Ohio. According to ICE, the network used roughly 40 shell companies to employ and house undocumented workers, many of them smuggled in through Mexico, while moving millions through bank accounts, real estate, and luxury goods.
Related: Treasury Secretary Bessent sends brutal warning to drug cartels
This story was originally published by TheStreet on Jun 2, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
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