US President Donald Trump reportedly signed an executive order on Tuesday aimed at preventing illicit financial activity in the US financial system.

The primary motive behind this initiative is to identify red flags and suspicious activity linked to payroll tax evasion, anonymous account masking, and labor trafficking among others.

Meanwhile, Trump instructs and oversees the US Treasury Secretary to issue a formal advisor to financial institutions.

According to the White House statement, the order directs the Treasury Secretary to suggest modifications that strengthen enhanced due diligence protocols and grants the department the authority to obtain additional information when warranted.

It further directs financial regulators to release directives on managing the credit risks of extending loans and financial services to undocumented migrants.

Trump signed an executive order to ensure that Federal regulators do not endorse policies and practices that allow financial institutions to limit services based on political beliefs and ensure fair access to banking for all Americans.

It is pertinent to note that the Trump Administration halted Operation Choke Point 2.0 for all by working to end regulatory efforts that restrict account access to the digital assets industry.

Additionally, Trump also signed the GENIUS Act into law-a landmark act paving the way for the United States to lead the global virtual asset market.