Trump to introduce KYC rules in US under citizenship data - here's what to know and documents required

Citizenship KYC rules USA 2026: The US may soon see stricter banking rules as the Trump administration moves closer to requiring citizenship data for opening bank accounts. Treasury Secretary Scott Bessent said banks should be prepared if regulators mandate collecting such information, emphasizing that institutions must follow the rules set by Treasury and banking authorities, as per a report.

US Banking Rules May Change Under New Citizenship Data Proposal

The proposal, currently “in process” as an executive order, is part of a broader effort to link immigration policy with data collection in areas like voting and the Census, as per a CNBC report. At present, US banks do not require citizenship documents to open accounts, though they must verify identity under “Know Your Customer” (KYC) rules designed to prevent money laundering and fraud.

How KYC Rules in the US Could Change

Under existing laws like the Bank Secrecy Act and the USA PATRIOT Act, banks already collect key details such as Social Security numbers or Individual Taxpayer Identification Numbers (ITIN), along with names, dates of birth, and addresses.


Bessent argued that these measures fall short, questioning how banks can fully “know your customer” without verifying whether an individual is a US citizen, green card holder, or in the country legally, as per the CNBC report. He also pointed out that many other countries require citizenship information for banking access.

What Documents May Be Required Under New Banking Rules

Support for tighter rules is growing among Republicans. Tom Cotton introduced a bill that would require banks and credit unions insured by the FDIC or NCUA to confirm whether new account holders are US citizens, permanent residents, or valid visa holders, along with additional legal status checks, as per the CNBC report.

Impact of New Rules on Non-Citizens and Immigrants - Cost Burden on Banks Under New KYC Requirements

However, the proposal raises concerns. Policy experts and banks warn that limiting access to bank accounts could push more people into a cash-based system, making it harder for them to pay taxes or participate in the economy. There are also worries about the cost of implementation. Estimates from the American Action Forum suggest the requirement could add between 30 million and 70 million paperwork hours and cost banks between $2.6 billion and $5.6 billion, as per the report.

FAQs

What is the new rule being proposed?
The proposal may require banks to collect and verify citizenship status when opening accounts.

Do US banks currently ask for citizenship proof?
No, banks currently verify identity but do not require citizenship documents.