Trump administration weighs plan to make banks collect customers’ citizenship details

The administration of US President Donald Trump is considering steps that could require banks to collect citizenship information from customers as part of a wider immigration crackdown, according to The Wall Street Journal, as cited by Fox Business. Discussions within the Treasury Department have explored options including an executive order or regulatory action. No decision has been approved so far, as per the report.

The proposal would align with the administration’s efforts to curb illegal immigration and could change current banking compliance norms.

Treasury officials have discussed measures that may direct banks to request new documents, such as a passport, from customers opening or maintaining accounts. According to the WSJ report, as quoted by Fox Business, sources familiar with the matter said banks have raised concerns about operational challenges and legal risks if new documentation standards apply to millions of account holders.


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Current rules do not require citizenship checks

Under existing “know-your-customer” regulations, banks must collect identifying details to prevent money laundering and financial crimes. These include a customer’s name, date of birth, address and taxpayer identification number. In some cases, banks may request a passport or Social Security number.

However, banks are not required to collect or verify citizenship status. There is no prohibition on non-citizens opening accounts in the United States. Banks also do not routinely share customers’ citizenship data with the federal government.

One option under consideration would involve the Treasury Department’s Financial Crimes Enforcement Network collecting such information, according to people familiar with the discussions.

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According to Fox Business, a White House official said the potential executive order has been discussed within the Treasury Department but has not received approval.

Senator Tom Cotton of Arkansas backed possible action. In a post on X, he wrote, “I strongly support President Trump taking action to prevent illegal migrants from accessing our banking system.” He also stated in a letter shared online that the “American banking system is a privilege that should be reserved for those who respect our laws and sovereignty.”