Trump Order Requires Banks to Verify Customer Citizenship

Treasury Secretary Scott Bessent announced that an executive order from President Donald Trump is in process to require banks to collect and verify citizenship information from both new and existing customers. Speaking at the Library of Congress, Bessent framed the measure as a necessary step to identify who is in the banking system and prevent access by foreign terrorist organizations and illegal immigrants. He specified that REAL IDs would not be considered eligible documents for banking purposes, requiring instead passports or birth certificates.

The initiative aligns with a broader administration strategy to tighten immigration enforcement and synchronize data collection with voting and Census efforts. Senator Tom Cotton supported the move, arguing that access to the financial system is a privilege reserved for those who respect U.S. sovereignty.

However, the proposal faces significant opposition from the banking industry and some Treasury staff, who describe the logistics as a complete nightmare. Critics warn the mandate could exclude millions of legitimate Americans—including rural and low-income citizens—who lack standardized documentation. The American Action Forum estimates the administrative burden could add up to 73.3 million hours of paperwork, costing banks between $2.6 billion and $5.6 billion. Policy experts further suggest the order could drive undocumented immigrants into a cash-only economy, potentially hindering economic growth.