The Trump administration is reportedly considering an executive order that would mandate banks to collect citizenship information from both new and existing customers. Treasury Secretary Scott Bessent stated that undocumented immigrants have no right to access the banking system, while banking industry groups and think tanks raise concerns about the administrative burden and potential costs of such a mandate. Advocates argue that bank accounts for non-citizens facilitate tax payments and integration into the formal economy.
The Trump administration is reportedly preparing an executive order that would require banks to collect citizenship data for new and existing customers.According to The Wall Street Journal and CNBC, the order is in the works and would come from the Treasury Department .
Here’s what we know: "Why can unknown foreign nationals come and open a bank account?" Treasury Secretary Scott Bessent told CNBC at an event in Washington, D.C., Tuesday. "Our bank executives’ job is to know your customer. How do you know your customer if you don’t know if they have legal or illegal status, whether they are a U.S. citizen or green card holder?"RELATED: DHS says US may stop processing international travelers at major airports in 'sanctuary cities'"If Treasury and the banking regulators say it’s their job, it’s their job," Bessent added.Bessent said undocumented immigrants "don’t have a right to be in the banking system."According to an analysis from the American Action Forum, a center-right think tank, a citizenship verification requirement for banks would add a collective 33.1-73.3 million hours of paperwork and cost banks between $2.6 billion and $5.6 billion. "Verifying new accounts is the tip of the iceberg; the lack of details makes it difficult to estimate the costs of verifying existing accountholders, but even under the most conservative of assumptions it would add millions of hours and billions of dollars in administrative costs," researchers wrote. Advocates also point out that bank accounts for non-citizens allow them to pay taxes and avoid the "unbanked" economy that often hinders their ability to contribute to the economy, according to CNBC. The proposal has reportedly sparked concern in the banking industry, with some questioning whether it’s legal, The Journal reports. FOX Local reached out to the American Bankers Association for comment. The executive order would bolster President Donald Trump’s aggressive immigration enforcement agenda, which includes efforts to add citizenship questions to voter registration and the U.S. Census. In the U.S., banks are required to verify your identity, but they’re not required to verify your citizenship status. The U.S. banking industry follows "Know Your Customer" regulations, which collect Social Security numbers, an Individual Taxpayer Identification Number , names, dates of birth and addresses, among other documents. Banks also have to assess risks and monitor transactions that may appear fraudulent.
Citizenship Data Collection Banking Regulations Executive Order Treasury Department Immigration Policy
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