Could banks be ordered to collect citizenship information from customers?
The Trump administration’s immigration enforcement efforts could soon extend to the nation’s banking system.
The Wall Street Journal reports President Donald Trump is weighing an executive order or other action that would require banks to collect citizenship information from people opening accounts — and potentially from existing customers, as well.
Currently, nothing prohibits U.S. banks from opening accounts for non-citizens.
What could change
According to the Journal, Trump may seek to force banks to collect a new category of documentation, such as passports, to verify citizenship status.
Banks already follow “Know Your Customer” rules designed to prevent money laundering and other crimes, which typically include collecting Social Security numbers and other identifying information. However, those rules do not require banks to determine or record citizenship status, nor do banks routinely share such information with the federal government.
An administration official told The Journal the idea is under discussion at the Treasury Department, but no final decision has been made.
White House calls report ‘baseless speculation’
A White House spokesman sought to downplay the report.
“Any reporting about potential policymaking that has not been officially announced by the White House is baseless speculation,” said spokesman Kush Desai.
Treasury potential role
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) oversees enforcement of anti-money laundering and counterterrorism financing laws. One option under consideration, The Journal reports, would be to have FinCEN oversee any new citizenship data collection requirements.
The administration has already used financial enforcement tools in other investigations.
In Minnesota, FinCEN reportedly issued orders requiring banks and money-transfer entities in two counties to turn over information on overseas transactions exceeding $3,000 as part of a probe into alleged welfare and social services fraud. That investigation has led to congressional hearings, with Minnesota officials called to testify. Gov. Tim Walz has said he will not seek re-election, citing the ongoing scrutiny as a distraction.
In January, Treasury Secretary Scott Bessent announced a Geographic Targeting Order “requiring enhanced reporting of certain international transactions,” along with alerts to financial institutions regarding suspected fraud in federal child nutrition programs.The IRS has also begun auditing financial institutions suspected of laundering fraud proceeds.
Immigration remarks in the State of the Union address
During his State of the Union address Tuesday night, Trump referenced the Minnesota investigation as part of his broader immigration crackdown.
“Somali pirates ransacked Minnesota through bribery, corruption and lawlessness,” Trump said. “We are gonna take care of this problem. We are not playing games. Importing these cultures through unrestricted immigration and open borders brings those problems right here to the USA.”
He also pledged support for new laws barring undocumented immigrants from voting. He did not mention any potential requirement involving citizenship verification for bank accounts.
The Journal reports banks have struggled to comply with recent Treasury directives tied to the Minnesota probe and are said to be “alarmed” that additional requirements, including the collecting citizenship information, could significantly expand their compliance obligations.
Ella Rae Greene, Editor In Chief
