FinCEN Advisory on Non-Work Authorized Populations and Their Employers and Risks to the Integrity of the U.S. Financial System

FinCEN issued a Joint Advisory on Non-Work Authorized Populations and Their Employers and Risks to the Integrity of the U.S. Financial System urging vigilance against fraud schemes involving the unlawful employment of undocumented workers. Key takeaways for financial institutions are: The Advisory identifies two primary typologies: identity theft by workers using fraudulently obtained Social Security numbers and other stolen PII to gain employment and access financial services; and payroll fraud schemes where complicit employers use labor brokers operating shell companies, often unregistered money services businesses, to pay workers off the books via cash couriers, checks, or P2P platforms while evading federal and state payroll taxes and workers' compensation obligations. Financial institutions reported over $2.5 billion in suspicious activity tied to such schemes in 2025. The Advisory also flags enhanced due diligence considerations around Individual Taxpayer Identification Numbers (ITINs), noting that their use in lieu of a Social Security number when opening accounts or applying for credit may be a relevant risk factor. The Advisory includes 18 red flag indicators and requests that institutions reference the key term "FINANCIALINTEGRITY-2026-A002" in SAR field 2 when filing related suspicious activity reports.