US Financial Regulators Issue Guidance on Lending Risk to Borrowers Not Authorized to Work in the Country

U.S. financial regulators, including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association, are issuing new guidance to banks. This guidance reminds institutions of their "know-your-customer" requirements and credit risk management, particularly concerning borrowers not authorized to work in the U.S., who are deemed to pose an overall risk to the financial system. This is part of the Trump administration's broader effort to discourage undocumented individuals from interacting with the U.S. financial system.