The new offensive by President Donald Trump’s administration against migrants without work authorization in the United States raised alarm bells in Guatemala. An executive order signed on May 19, 2026 could result in greater obstacles to the shipment of remittances, banking restrictions for thousands of Guatemalans and direct effects on the national economy, highly dependent on these resources.
The provision, called “Restoring Integrity to America’s Financial System,” instructs US authorities to strengthen identification controls, financial monitoring and credit evaluation of immigrants without work authorization. Although the regulations have internal scope in the US, Fundesa warns that Guatemala could face “significant” economic consequences due to the weight that remittances have in the country.
At the moment, Remittances represent close to 19% of the Gross Domestic Product (GDP) Guatemala and exceeded US$22 billion in 2024, a record figure that sustains the consumption of millions of households.
Risk for migrants and receiving families
One of the main fears is that the new financial verification requirements will complicate the access of Guatemalan migrants to the US banking system.
The order contemplates greater controls on transfers, use of ITIN numbers —tax documents used by migrants without social security—, digital platforms for sending money and bank accounts linked to people without work authorization.
Fundesa also warns that the US administration will evaluate the risk of accepting foreign consular license plates as a valid financial identification mechanism. This puts the Guatemalan consular license plate under pressure, a document used by thousands of Guatemalans to open accounts and send money formally.
If additional restrictions materialize, banks and remittance operators could close accounts, block transactions or tighten verification processes, which would directly affect the ability of migrants to send money to their families.
Another expected effect is the shift towards informal delivery mechanisms. According to the analysis, if regulated channels become more difficult or expensive, some migrants could turn to unsupervised networkswhich would increase the risks of fraud and reduce the money that families in Guatemala ultimately receive.
Macroeconomic impact
The concern transcends the immigration field. Fundesa maintains that a reduction of between 5% and 10% in the flow of remittances would have sensitive macroeconomic repercussions for Guatemala.
Among the effects noted are pressures on the exchange rate, decreased consumption in rural areas dependent on remittances, and lower dynamism of credit and tax collection. The most vulnerable departments would be Alta Verapaz, Huehuetenango, San Marcos and Quiché, where much of economic activity depends on money sent from the US.
Additionally, the executive order could limit access to credit for undocumented migrants in the US, especially mortgage, auto and consumer loans. This would reduce their savings and investment capacity, with indirect repercussions for Guatemala.
The document warns that The critical period will begin in the next 60 to 180 days, when the Treasury Department and other US entities issue specific regulations and reforms related to banking supervision and financial identification programs.
Guatemala facing a window of reaction
Fundesa believes that Guatemala still has room to act before the new provisions fully come into force.
The organization states that The Government must activate diplomatic channels with Washington to defend the recognition of the Guatemalan consular registration plate and coordinate regional positions together with other Central American countries and Mexico.
Also recommends establishing systems to monitor the behavior of remittancesstrengthen financial inclusion programs and make it easier for recipient families to use formal bank accounts instead of cash.
Another suggestion aims to strengthen compliance and identity verification mechanisms in Guatemalan remittance operators to avoid account closures and keep formal transfer channels open.
Recommendations for migrants and families
- Keep financial and identification documentation used in the US up to date, especially those related to bank accounts and remittance services
- Avoid depending exclusively on informal channels to send money, due to the risks of fraud, economic losses and lack of legal support
- Strengthen the use of bank accounts and digital tools in Guatemala to receive remittances in a formal and secure manner
- Monitor possible regulatory changes in the US that may affect access to financial services for Guatemalan migrants
- Promote financial education programs for families receiving remittances, in order to promote savings, investment and better management of the money received
- Diversify household income sources and reduce exclusive dependence on remittances, especially in highly vulnerable rural communities
- Promote public policies focused on job creation, attracting investment and strengthening the local economy to reduce the country’s exposure to external migration and financial decisions.