The US Treasury Department’s Financial Crimes Enforcement Network urged financial institutions to report suspected employment fraud linked to undocumented workers and payroll schemes.
FinCEN issued the advisory on Friday, calling on banks and other financial institutions to detect illicit activity tied to unlawful employment.
US Treasury Secretary Scott Bessent said the administration would not allow unauthorised populations to use financial institutions to steal billions of dollars from American taxpayers.
Bessent said employers who hire and exploit undocumented workers gain an unfair edge over lawful businesses. He said such practices depress wages, enable identity theft and reduce tax revenue.
FinCEN said unlawfully obtained wages can help finance transnational criminal organisations. It also warned that such funds may support drug trafficking, human trafficking and other global criminal activity.
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The advisory cited a case study involving two foreign national fraudsters who operated a payroll scheme for years.
FinCEN said the scheme employed undocumented workers and cost the United States more than $38 million.
