New Guidance on “Non-Work Authorized” Individuals: Lending, BSA & Other Compliance Implications for Your Institution

In July of 2026 the federal regulatory agencies issued joint interagency guidance reminding institutions of their “existing obligations” regarding credit risk management when lending to borrowers who are not legally authorized to work in the United States. What does this mean exactly? Can we not lend to such individuals? Would it be a violation to do so? And how would we even know? What sorts of documentation should we be asking for?

We’ll be addressing these questions and more in this session, by discussing what you can and cannot do here, including whether this constitutes discrimination on any prohibited basis. Will we get in trouble if we do continue to lend to such individuals? We’ll also talk about your internal policies and procedures and think of them from a BSA/CIP perspective, so that you can make the best and most educated decisions for your institution.