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Foreign Issued Identification Cards  &
U.S. Financial Institutions

 

Legal Considerations

 

Even as Congress continues to focus on the threat to national security of unsecured and fraudulent documentation, some financial institutions in the United States have begun recognizing, or are planning to recognize, identification cards issued by non-U.S. authorities.  Specifically, a growing number of financial institutions now authorize, utilize, recognize, or incorporate (hereinafter, "accept") the matricula consular—an identification card issued by the government of Mexico to Mexican nationals illegally residing in the United States.

 

After careful consideration, it is our legal opinion that acceptance by financial institutions of the matricula consular

 

  1. is a federal statutory violation
  2. raises Constitutional issues
  3. opens the institution to civil liability and personal injury lawsuits
  4. exposes the institution to prosecution (including criminal prosecution), and legal action by competing financial institutions under the Racketeering Influenced and Corrupt Organization Act (RICO).

 

 

Federal Statutory Violation

 

Acceptance of the matricula consular by any financial institution enables Mexican nationals illegally residing in the United States to open bank accounts, among other things.[1]

 

Since only illegal aliens have need of the matricula consular to open a bank account (all legal residents having the right to official U.S. identification), any financial institution that accepts the matricula consular is in likely violation of Section 274 of the Immigration and Nationality Act, which provides criminal penalties for any act that "encourages or induces an alien to come to, enter, or reside in the United States, knowing or in reckless disregard of the fact that such coming to, entry, or residence is or will be in violation of law."[2] 

 

U.S. Constitutional Concerns

 

The courts have long recognized that by Article I, Sec. 8 of the U.S. Constitution (the Commerce Clause), Congress has "plenary power" over all aspects of immigration law, including "the right to provide a system of registration and identification" for aliens, because "the entire control of international relations" is invested in the national government.[3]

 

An official policy to accept an official foreign national identification document issued to aliens present in the United States in violation of Federal law improperly annexes powers to a financial institution that are rightfully Congress' and the policy might therefore be challenged on constitutional grounds.

 

In a Supreme Court decision striking down a Pennsylvania alien registration statute, it was held that the "Federal Government...is entrusted with full and exclusive responsibility for the conduct of affairs with foreign sovereignties[, and that o]ur system of government is such that the interest of the cities, counties and states, no less than the interest of the people of the whole nation, imperatively requires that federal power in the field affecting foreign relations be left entirely free from local interference.[4]

 

Therefore, no public institution except the Federal Government may make any policy that conflicts with Federal immigration policy. 

 

Civil Liability and Personal Injury Lawsuits

 

Entering the United States without inspection (illegal entry) is a criminal offense under 8 U.S.C. 1325.  Providing services to an alien so entered in "knowing and reckless disregard" of the alien's illegal status amounts to aiding and abetting a crime, and, insofar as it encourages the alien to remain illegally in the United States, is a criminal violation in and of itself. 

 

Aiding an illegal entrant in his continued illegal residence in the United States constitutes a dangerous and unreasonable risk to the health and safety of the public, since, among other reasons, unlike legal entrants, an illegal entrant is not subject to a criminal background or health check before entering the United States. 

 

Furthermore, when such aid or encouragement is administered via official acceptance by any financial institution of the matricula consular, by which possession any financial institution, or any person acting under the authority of any financial institution, would or should have known in the exercise of reasonable care that the person holding the card is an illegal alien, the financial institution, or its officers, can be said to be negligent.  

 

If any illegal entrant, whose illegal presence in the United States can be shown to have been encouraged, induced and/or aided by any public entity or financial institution, commits a crime, during the commission of which an American citizen suffers personal injury, Friends of Immigration Law Enforcement (FILE) has determined that the public entity or financial institution bears civil liability.  FILE will attempt to help any injured party that seeks help bring a personal injury suit against the public entity or financial institution so liable, and, to the extent allowed by law, against its officers, individually and severally, for damages.

 

Racketeering Influenced and Corrupt Organization Act (RICO)

 

Encouraging an illegal alien to remain illegally in the United States is a criminal offense indictable under the Racketeering Influenced and Corrupt Organization Act (RICO), if the act indictable under such section [274] of such [Immigration and Nationality] Act was committed for the purpose of financial gain.[5]

 

Acceptance by any public entity or financial institution of the matricula consular is for the purpose of financial gain.

 

A RICO defendant has violated Section 274 of the Immigration and Nationality Act if the defendant "encourages or induces an alien to come to, enter, or reside in the United States, knowing or in reckless disregard of the fact that such coming to, entry, or residence is or will be in violation of law."[6]

 

"Encouraging" includes actions that permit illegal aliens to be more confident that they could continue to reside with impunity in the United States, or actions that offer illegal aliens "a chance to stand equally with all other American citizens."[7]

 

Under RICO, encouraging for financial gain an illegal alien to remain illegally in the country constitutes a predicate act of "racketeering," and a "pattern of racketeering activity" has been established if there are at least two separate predicate acts of racketeering activity.[8]

 

Under RICO, any person injured in his business or property by reason of a violation of RICO statutes may sue therefor and may claim treble damages, costs, attorney's fees and injunctions.[9]

 

Class actions are permissible under RICO through the Federal Rules for Civil Procedure, Rule 23 when plaintiffs have individual standing under RICO statutes.[10]

 

Thus, we draw the reasonable conclusions and express the carefully considered legal opinions that:

 

The ability by an illegal alien to open a bank account in the United States, or otherwise enter into a commercial arrangement in the United States, encourages and facilitates residence in the United States by illegal aliens.

 

By accepting the matricula consular or any other foreign, non-U.S. verified identification, a financial institution encourages Mexican nationals illegally residing in the United States to remain illegally in the United States and induces others to come illegally to the United States.

 

Any financial institution that recognizes the matricula consular, etc. is complicit in a pattern of corruption and is in violation of the Immigration and Nationality Act.

 

And while we fully acknowledge no court of law has yet determined such, we believe, therefore, and for the reasons stated above, any financial institution that accepts the matricula consular is indictable under the Racketeering Influenced and Corrupt Organization Act.

 

It is our opinion, furthermore, and we are convinced the general public will agree,[11] that the growing acceptance of the matricula consular by various public entities and institutions in the United States constitutes a "stealth amnesty" for illegal aliens.  Indeed, reports indicate that officials in the Mexican government openly assert that the growing acceptance by U.S. institutions and political units of the matricula consular is essentially an "amnesty" for Mexican nationals illegally residing in the United States.[12]   

 

We believe this de facto amnesty is illegal, generates more illegal immigration, decreases the ability of U.S. authorities to maintain a system of secure identification,[13] is not supported by the people of the United States, and "threaten(s) the domestic security, and undermine(s) the general welfare of the Nation and its citizens"[14]



[1] This is common and public knowledge.  Cf., e.g., "A Card Allows U.S. Financial institutions to Aid Mexican Immigrants," New York Times, July 6, 2002 & "Using a Bottom-Up Approach, Mexico Pushes ID for Migrants," The Wall Street Journal, October 25, 2002

[2] 8 U.S.C. §1324(a)(1)(A)(iv)

[3] (Fong Yue Ting v. United States, 149 U.S. 698 (1893))

[4] Hines v. Davidowitz, 312 U.S., at 66 –67  (1941)

[5] 18 U.S.C. §1961(1)(F)

[6] 8 U.S.C. §1324(a)(1)(A)(iv)

[7] U.S. v. Oloyede, 982 F.2d 133 (4th Cir. 1992)

[8] 18 U.S.C §1961(1) and (5)

[9] 18 U.S.C §1964(c)

[10] N.O.W. v. Scheidler (92-780), 510 U.S. 249 (1994)

[11] Americans oppose amnesty for illegal aliens by 60 percent to 29 percent, Harris Poll, August 15 - August 22, 2001

[12] "Using a Bottom-Up Approach, Mexico Pushes ID for Migrants," The Wall Street Journal, October 25, 2002

[13] " Mexican ID cards caught in growing debate; Federal authorities warn that 'matriculas' are not reliable," The Denver Post, October 10, 2002

[14] Title IX of the Organized Crime Control Act of 1970