A new Trump executive order increases scrutiny on cross-border money transfers, raising concerns for undocumented migrants and families in Mexico who rely on remittances.
President Donald Trump signed an executive order Monday titled “Restoring Integrity to the United States Financial System,” imposing new monitoring requirements on banks and financial institutions that could directly affect the flow of remittances to Mexico.
Although the document does not explicitly mention remittances, its provisions clearly target the money millions of dollars that Mexican migrants send to their families every month.
The order, dated May 19, 2026, instructs the Treasury Department to issue formal guidance within the next 60 days, warning financial institutions about risks associated with low-value cross-border transfers, which are described as potential vehicles for illicit financing activities.
Mexico is the world’s third-largest recipient of remittances. In 2025, Banco de México recorded more than $64 billion in remittance income, the vast majority coming from the United States.
Trump’s order does not ban remittances, but it opens the door for banks to increase oversight, request additional documentation, or even reject transactions from migrants without legal immigration status, who represent a significant portion of those sending money to relatives in Mexico.
What options do migrants have?
The new rules are expected to significantly change how migrants traditionally send money home. Cash transfers could largely disappear, signaling the end of services such as Western Union and MoneyGram for many users. Migrants will likely have to shift toward digital and bank-based transfers, since the law exempts all electronic transfers from the new 1% tax.
The most viable legal and financial alternatives include:
Use bank accounts and debit or credit cards
Direct exemption: Remittances sent through a U.S. bank account or by debit or credit card are exempt from the 1% tax.
Consular ID access: Undocumented migrants can open checking or savings accounts at many U.S. banks and credit unions using a Mexican Consular ID card or an ITIN tax identification number without needing a Social Security number.
Move to digital platforms and mobile apps
Fintech and transfer apps: Online transfer services and mobile apps are exempt from the tax.
Digital wallets: Tools such as Google Pay, Apple Pay, and specialized money transfer apps are not affected by the fee on physical cash transactions.
Prepaid cards from traditional companies: Some remittance companies now offer prepaid card systems that allow migrants to deposit cash at a branch and transfer funds digitally to Mexico, legally avoiding the tax.
Rely on relatives or trusted contacts with legal status
Shared financial access: Migrants without legal status may rely on relatives or trusted individuals who are U.S. citizens or legal residents to send electronic transfers through their bank accounts.
Mexican government financial tools
Finabien: Through the Financial Card for Wellbeing program, migrants can send money from the United States using a mobile app at very low cost, allowing relatives in Mexico to collect funds at branches or receive them directly on another Finabien card.
What migrants should avoid
Cash transactions, money orders, and cashier’s checks: Any remittance sent through these physical payment methods will automatically trigger the 1% fee.
Informal transfer channels: Sending cash through unregistered intermediaries or travelers may avoid the tax, but exposes migrants to theft, fraud, and extortion without legal protection.
ITIN numbers under greater scrutiny
One of the most sensitive parts of the order is its explicit reference to the ITIN, the tax identification number widely used by undocumented migrants to open bank accounts and make international transfers.
The order states that ITIN usage “may be identified as a risk factor requiring enhanced due diligence,” which in practice could mean more obstacles for migrants who rely on the number to move money.
Economic impact on Mexico
The direct and indirect consequences for Mexican households and the broader economy could be significant.
Higher transfer costs: The 1% tax applies to remittances delivered in cash, money orders, and cashier’s checks. Although digital and bank transfers remain exempt, many migrants without regular immigration status still depend on cash based services, increasing the overall cost and reducing the amount families receive in Mexico.
Increased financial surveillance: The order instructs the Treasury Department to strengthen identification requirements. Banks may investigate the origin of funds more aggressively, potentially delaying, blocking, or canceling low value remittances that millions of Mexican households rely on.
Lower purchasing power: These restrictions come on top of an existing decline in remittance volumes and reduced purchasing power caused by inflation in Mexico.
Shift toward informal channels: To avoid fees and increased scrutiny, some migrants may turn to informal or high risk methods of sending money back to their communities.
