Trump weighs requiring citizenship information from bank customers nationwide: reports
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The Trump administration is mulling an executive order or separate action that would require banks to collect citizenship information from their customers, according to reports.
The Wall Street Journal reported on Tuesday that Treasury Department officials discussed possible measures to have banks collect citizenship information from customers in a way that would be consistent with Trump’s campaign to crack down on immigrants living in America illegally.
According to sources familiar with the matter, the move could eventually lead banks to ask for a new category of unprecedented documents – such as a passport – from customers who want to open or maintain accounts.
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Chase bank branch in New York on July 2, 2024. (Jeenah Moon/Bloomberg via Getty Images/Getty Images)
The report said the talks have worried banks, some of the sources said, as managers consider the operational burdens and legal risks of imposing new documentation standards on millions of customers.
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Banks are not required to collect or verify citizenship status directly. (Michael Nagle/Bloomberg via Getty Images/Getty Images)
Under existing “know-your-customer” laws, banks are required to collect certain identifying information to monitor money laundering and financial crimes.
That usually includes the customer’s name, date of birth, address and taxpayer identification number and, in some cases, a passport or Social Security number.
Banks are not required to collect or verify citizenship status directly, and there is no restriction on opening accounts for non-citizens who reside in US banks and do not share customers’ citizenship information with the federal government.
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Sen. Tom Cotton, R-Ark., said he supports the Trump administration’s “action to prevent illegal immigrants from accessing our banking system.” (Bill Clark/CQ-Roll Call, Inc via Getty Images/Getty Images)
Another consideration is that the Treasury Department’s Financial Crimes Enforcement Network has collected information, according to people familiar with the matter.
A White House official reportedly said the executive order could be discussed within the Treasury Department but not yet approved.
Sen. Tom Cotton, R-Ark., shared a letter online that he sent Treasury Secretary Scott Besent last year and said “America’s banking system is a privilege that should be reserved for those who respect our laws and sovereignty.”
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“I strongly support President Trump taking action to prevent illegal immigrants from entering our banking system,” Cotton wrote in an X post on Tuesday.
FOX Business has reached out to the White House for comment.
