Trump Signs Order Aimed At Preventing Illicit Financial Activity

In November, the Treasury Department also disclosed its intention to reclassify specific refundable tax credits as “federal public benefits,” which would limit the eligibility of certain non citizens who submit taxes in the United States

“President Trump is taking action to restore integrity to America’s financial system, cracking down on illicit activity that threatens national security and ending the extension of credit to high-risk borrowers that American citizens are forced to subsidize,” a White House fact sheet for the order said.

“Restoring sound underwriting standards puts money back in the pockets of law-abiding Americans,” the order added.

The fact sheet claimed that “gaps in customer identification practices have allowed terrorists, drug traffickers, money launderers, and other criminal networks to exploit U.S

The White House also pointed to cases of banks extending mortgages, credit cards, and loans to undocumented immigrants and employers underreporting wages for undocumented employees, arguing that associated “costs are passed on to American consumers in the form of higher fees and interest rates. ”

Economists generally attribute higher rates to benchmark rates, which are used to balance inflation and job growth, bank funding costs, and individual factors like borrowers’ credit scores.