The Trump administration is considering a new measure that could require banks to collect citizenship information from customers. According to sources from the Wall Street Journal and Semafor, the proposal is expected to be issued as an executive order, applying to both new and existing customers. This is seen as a more aggressive step in the current administration's campaign to tighten immigration management.
Citizenship verification rules and logistical concerns
If implemented, banks may have to require customers to provide passports to verify citizenship instead of standard documents. According to sources, REAL ID cards will not be considered valid proof of citizenship under this new regulation. Currently, federal law only requires banks to collect basic information such as name, date of birth, and identification numbers to prevent money laundering under “Know Your Customer” rules.
Financial experts have expressed deep concern over the proposal's feasibility, calling it an operational "nightmare." Additionally, this requirement could pose difficulties for U.S. citizens themselves, as only about 50% of the population currently holds a valid passport. One option being considered is assigning the collection and management of this data to the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury.
Reactions from political circles and the White House
Senator Tom Cotton expressed strong support for the measure to prevent illegal immigrants from accessing the U.S. banking system. He stated he would soon introduce related legislation to bolster the administration's efforts in tightening financial oversight. Conversely, White House spokesperson Kush Desai remarked that information regarding unannounced policies is currently unfounded speculation.
Currently, discussions surrounding the collection of citizenship information are still ongoing, and no official announcement has been made. Banks and consumers in the U.S. are awaiting more specific guidance from the government in the near future. If the executive order is passed, it would create a major shift in the daily financial transaction processes for millions of people.
