The U.S. Department of the Treasury issues a new advisory to banks warning them to watch for “red flags” connected to customers who are in the country illegally. The guidance comes from the Treasury’s Financial Crimes Enforcement Network (FinCEN), a unit focused on enforcing financial crimes laws and combating illicit activity. The advisory directs financial institutions to pay closer attention to risks that can arise when individuals involved in unauthorized employment use banking services. FinCEN highlights potential schemes that may include identity theft, payroll tax fraud, and money laundering, often connected to hiring unauthorized workers. The warning is framed as a risk-based notice intended to help banks identify suspicious activity and comply with reporting and anti-money laundering obligations. Overall, the advisory emphasizes that banks should strengthen monitoring and due diligence to detect transactions and customer behavior that could indicate criminal activity related to illegal immigration status and related financial crimes.