President Donald Trump may be preparing to take his immigration enforcement efforts into a new arena.
The American banking system.
According to multiple media reports, the Trump administration is considering an executive order that would require banks to collect citizenship information from customers. While the proposal has not been finalized, it signals a potential expansion of Trump’s broader crackdown on illegal immigration.
If implemented, the policy could apply to both new and existing bank accounts.
What Is President Trump Proposing?
Under current federal law, banks are not required to verify whether a customer is a U.S. citizen. Noncitizens can legally open bank accounts, provided they meet identity verification requirements.
Financial institutions already follow strict “Know Your Customer” (KYC) regulations designed to prevent money laundering and terrorist financing. These rules require banks to collect:
- Full legal name
- Date of birth
- Residential address
- Government-issued identification number
However, citizenship status is not currently part of that process.
The proposed executive order could change that.
Banks might be required to request proof of U.S. citizenship — potentially including passports or other official documentation. Reports indicate that REAL ID-compliant driver’s licenses would not qualify as proof of citizenship, since they do not confirm legal status.
Why This Matters For Immigration Enforcement
Immigration enforcement has remained a central priority of President Trump’s administration. From strengthening border security to tightening asylum policies, Trump has consistently argued that illegal immigration affects national security, public resources, and the rule of law.
Supporters say expanding verification requirements to financial institutions would help prevent illegal migrants from accessing parts of the U.S. financial system.
Critics argue the proposal could create logistical and legal complications.
Response From The White House
When asked about the reported discussions, White House spokesman Kush Desai said that speculation about unannounced policy decisions should not be treated as official action.
At this time, no executive order has been signed.
Support From Republican Lawmakers
Senator Tom Cotton (R-Ark.) publicly expressed strong support for efforts to prevent illegal migrants from accessing the U.S. banking system.
Cotton has indicated he plans to introduce legislation addressing the issue and previously urged Treasury officials to investigate the matter.
If pursued administratively, one possible pathway could involve the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which already monitors financial transactions for suspicious activity.
Concerns From The Banking Industry
Banks are reportedly raising concerns about:
- Legal authority for the requirement
- Operational challenges
- Costs associated with verifying citizenship for millions of customers
Another practical issue is documentation. According to federal data, only about half of American adults currently hold valid passports. That means some U.S. citizens may not have immediate proof of citizenship readily available.
Financial institutions could face significant administrative burdens if required to retroactively verify existing customers.
Frequently Asked Questions
Would this affect current bank accounts?
Reports suggest the requirement could apply to both new and existing customers, though no final decision has been made.
Is citizenship verification currently required?
No. Banks verify identity, but they do not currently verify citizenship status.
Has President Trump signed the order?
No. Discussions have been reported, but no executive action has been officially announced.
The Bigger Picture
Immigration policy continues to be one of the defining issues of President Trump’s presidency. For many Americans — particularly voters concerned about border security, economic stability, and national sovereignty — enforcement measures remain a top priority.
Whether this banking proposal moves forward remains to be seen. But if implemented, it would represent a significant expansion of federal immigration enforcement into the financial sector.
As Washington debates next steps, millions of Americans are watching closely.
