Treasury Dept. moves to crack down on illegal immigrant labor, urging banks to report ‘red flags’
The Treasury Department is intensifying efforts to combat illegal immigrant labor by urging banks to report suspicious activities related to payroll fraud. A new advisory outlines specific red flags for banks to monitor, including the use of shell companies and unauthorized workers. This initiative is part of a broader strategy to protect legitimate businesses and prevent tax revenue loss.
- ▪The Treasury Department has issued an advisory urging banks to report accounts linked to payroll fraud schemes involving illegal immigrant labor.
- ▪In 2025, banks reported over $2.5 billion in suspicious activity related to payroll tax fraud schemes.
- ▪The advisory highlights how employers and labor brokers exploit unauthorized workers through shell companies to evade payroll taxes.
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Business exclusive Treasury Dept. moves to crack down on illegal immigrant labor, urging banks to report ‘red flags’ By James Franey Published June 5, 2026, 5:00 a.m. ET See more of our coverage in your search results. Add The New York Post on Google The Treasury Department is moving to crack down on illegal immigrant labor, urging banks to blow the whistle on accounts tied to payroll fraud schemes. A Treasury advisory obtained by The Post lays out red flags showing illegal employment schemes — and exhorts banks to report employers who hire or exploit unauthorized workers to Immigration and Customs Enforcement. Banks already smell the rot.
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