Trump's New Order Could Block Undocumented Migrants From US Banks and Remittances
A new executive order from former US President Donald Trump seeks to limit undocumented migrants’ access to the financial system. The move targets bank accounts, money transfers, and other financial services. While the full effects remain uncertain, experts suggest the policy could reshape how remittances flow to countries like Mexico. The order aims to block undocumented migrants from using formal financial channels. This includes opening bank accounts, accessing credit, and sending money abroad. Earlier in Trump’s term, broader proposals—such as a tax on all remittances—were considered but later reduced in scope.
Over 90% of remittances currently pass through regulated systems like banks and transfer operators. If blocked, migrants may rely on informal methods, such as asking documented relatives or friends to handle transactions. Digital alternatives outside traditional banking could also see increased use.
Carlos Serrano, BBVA Mexico’s chief economist, downplayed fears of a drastic drop in remittances to Mexico. He argued that while the policy could disrupt financial access, alternative routes would likely emerge. The most vulnerable group would be undocumented workers, who may struggle to open accounts or secure loans.
The final impact depends on how the order is enforced over the next 90 days. Financial institutions, which have resisted similar measures before, may again push for adjustments to soften the restrictions. The executive order’s biggest effect could be on financial inclusion for Mexican migrants in the US. Stricter rules may force them into less secure, informal systems to support families back home. Until implementation details are clear, the full consequences for remittances and banking access will stay unknown.
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