Undocumented immigrants afraid of using U.S. banks

Stuffed in the bottom of a sock, or between the folds of clean clothes, or in the back of a drawer: There are dozens of places undocumented immigrants find to stash their savings. Surprisingly few of them, however, involve a bank.

There is no regulation that requires proof of legal status to open a bank account in the United States, and an increasing number of small banks are pursuing immigrant and Hispanic customers. Yet finance professionals and immigrant advocates say millions of undocumented men and women still opt to keep their cash on hand, or else wire it home a little at a time, paying for each transaction as they go.

Advocates say the problem largely lies in gaping cultural divides, and fear among the undocumented that bank accounts would make them more visible to authorities. The result is an increased risk of theft, especially on payday, when workers head home with their money in their pockets. As an undocumented Guatemalan dishwasher recently found out, cash also can be confiscated by customs officials for violations of currency laws.”*

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