Treasury warns banks of 'red flags' tied to customers in the U.S. illegally

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The Financial Crimes Enforcement Network issued an advisory to banks Friday warning them to watch for identity theft, payroll tax fraud, and money laundering connected to the hiring of unauthorized workers. FinCEN, a Treasury Department bureau that polices financial crime, identified these schemes as red flags banks should monitor in customer accounts. The guidance doesn't represent new enforcement action but rather alerts financial institutions to patterns that regulators believe warrant closer scrutiny. Banks are already required to report suspicious activity; this advisory clarifies what patterns tied to unauthorized workers merit that reporting.