The White House is considering requiring banks to verify the citizenship of their customers

In a decision that would block thousands of undocumented migrants from accessing the banking system, the Donald Trump administration is considering a new measure that could force banks in the United States to collect information on the citizenship of their current and future customers.

The proposal, which according to national media outlets such as The Wall Street Journal could take the form of an executive order or other action driven primarily by the Treasury Department, would require financial institutions to request additional documentation — such as passports or other documents proving citizenship — from those who wish to open or maintain a bank account. Currently, there is no rule prohibiting non-citizens from opening accounts in the United States, nor do existing rules require verification of immigration status as part of routine checks.

Under “know your customer” provisions, banks must collect basic information to prevent money laundering and other illegal activities, including name, date of birth, and address, generally verified by a driver’s license or other form of identification. They are also required to comply with anti-money laundering laws and report suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), created under the Bank Secrecy Act. However, these requirements do not include the specific collection of data on citizenship or its systematic reporting to the government.

The initiative would go beyond those requirements. According to people familiar with internal deliberations, the measure could apply not only to new customers but also to existing account holders, which would involve a retroactive review of millions of banking relationships. It is unclear whether the potential order would simply require the collection of additional information or whether it would go so far as to require the closure of accounts for those who cannot provide the required documentation. Approximately half of the U.S. Population does not have a passport, raising concerns about the practical impact of the proposal.

The financial industry has responded with alarm. Bank executives have expressed concern about having to request an unprecedented category of documents from their customers and about being directly involved in the enforcement of federal immigration policy. Representatives of large banks and industry associations have declined to comment publicly, but industry sources cited by CNN have described the idea as “unworkable” and warned that verifying the citizenship of every customer would be logistically complex and costly.

Some banks already collect passports or Social Security numbers as part of their identification processes, but they are not required to formally determine or record citizenship. In addition, several major institutions allow accounts to be opened without a Social Security number. The eventual requirement for proof of citizenship could result in the loss of foreign customers and a reduction in deposits, with possible effects on banks’ ability to lend and invest in local economies.

The White House has avoided confirming details of any imminent action. White House Deputy Press Secretary Kush Desai has reiterated that any information about measures not officially announced constitutes “baseless speculation.” Administration officials have indicated that no order has been approved and that legal options remain under review.

Among the avenues being considered is the possibility that the Treasury, through FinCEN, could use its authority under the Bank Secrecy Act to modify identity verification requirements. However, such a change could require a formal regulatory process. Meanwhile, Republican Senator Tom Cotton has announced his intention to introduce legislation to prevent undocumented immigrants from accessing the banking system, describing such access as a privilege reserved for those who respect the country’s laws.

The discussion about bank accounts is part of a broader effort by the administration to limit non-citizens’ access to various areas of the financial and administrative system. In recent months, the Trump administration has pushed measures to strengthen citizenship verification on federal forms, restrict certain benefits, and expand information sharing between agencies. Immigration and Customs Enforcement (ICE) has also launched programs to track undocumented migrants using remote technologies and field surveillance.

At the same time, the administration has denounced “debanking” practices against conservatives and signed executive orders to sanction banks that restrict services for religious or political reasons. Trump himself filed a lawsuit against JPMorgan Chase for canceling his banking relationship after the attack on the Capitol on January 6, 2021, a lawsuit that the bank considers unfounded.

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