Key insights
- President Trump signed executive orders targeting illicit financial activity and promoting FinTech collaboration. The order directs the Treasury to issue advisories on suspicious activity and propose changes to Bank Secrecy Act regulations. While aimed at long-term financial stability, the immediate market impact is likely limited, with a slight negative bias due to increased regulatory scrutiny.
May 19 (Reuters) - U.S. President Donald Trump signed an executive order on Tuesday aimed at preventing illicit activity in the U.S. financial system, the White House said.
Trump’s order directs the U.S. Treasury Secretary to issue a formal advisory to financial institutions identifying red flags and suspicious activity patterns tied to payroll tax evasion, concealment of true account ownership and labor trafficking, among others.
The order also directs the Treasury Secretary to propose changes to Bank Secrecy Act regulations to strengthen customer due diligence requirements and the authority to obtain additional information when warranted, the White House said in a statement.
Trump also signed an executive order on Tuesday to streamline regulations and promote collaboration between financial technology firms, federally regulated financial institutions, and federal financial regulators, according to the White House.