Trump Weighs Forcing Banks To Verify Citizenship
Officials have discussed an executive order that could require banks to collect passports or other proof of citizenship from new and existing customers, industry sources said.
Fox BusinessTrump eyes bank citizenship checks amid immigration crackdown: reports
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Overview
The Trump administration is considering an executive order to require banks to collect customers' citizenship information, people familiar with the matter said.
The proposal would align with the administration's crackdown on immigrants living in the U.S. illegally and could force banks to request passports or other citizenship documents from new and existing customers.
Bank and industry sources said they are alarmed, calling verification of every customer's citizenship 'unworkable,' and White House spokesperson Kush Desai said reports of unannounced policymaking are 'baseless speculation.'
Sen. Tom Cotton wrote on X that he 'strongly support[s] President Trump taking action to prevent illegal migrants from accessing our banking system,' and reports noted that approximately half the U.S. population lacks a passport.
It was unclear whether President Trump will sign an executive order, and sources said Treasury officials have discussed having the Financial Crimes Enforcement Network collect the information.
Analysis
Center-leaning sources frame the story as portraying the policy as unworkable and politically risky by prioritizing industry pushback and vivid quotes ('complete nightmare', 'unworkable', 'asked to present his papers'), noting REAL ID limits and a White House denial as 'baseless speculation', while offering little administration rationale or proponents' voices.
FAQ
The Trump administration is considering an executive order requiring banks to collect proof of citizenship, such as passports, from both new and existing customers to track immigrants for deportation efforts.
Banks view verifying citizenship for every customer as unworkable due to operational burdens, legal risks, and the fact that current 'know your customer' rules do not require citizenship verification.
White House spokesperson Kush Desai described reports of unannounced policymaking as 'baseless speculation' and unfounded.
Legal experts say no; it likely requires congressional approval or regulatory changes through the Administrative Procedure Act, which could take one to two years.
Sen. Tom Cotton stated he 'strongly supports' President Trump preventing illegal migrants from accessing the U.S. banking system.
