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Trump Administration Moves Toward Requiring Banks to Collect Customer Citizenship Data
By Aurax Desk | April 16, 2026 | 2 min read
The Trump administration is advancing plans for an executive order that could require U.S. banks to collect and verify customers’ citizenship status, a controversial move raising concerns over privacy, access to banking, and regulatory burden.
A bank branch in the United States as policymakers consider new citizenship data requirements for customers.
The Trump administration is moving forward with plans to require U.S. banks to collect citizenship information from their customers, a proposal that could significantly reshape how Americans access financial services.
Treasury Secretary Scott Bessent confirmed that an executive order mandating banks to gather citizenship data is currently “in process,” signalling that the policy may soon be formally introduced.
Under the proposal, financial institutions could be required to request additional documentation—such as passports or birth certificates—from customers when opening accounts, and potentially from existing account holders as well. The move would represent a major expansion of current banking rules, which typically require only basic identification such as name, address, and date of birth.
U.S. Treasury Secretary Scott Bessent, who confirmed the order is in progress.
The initiative is part of a broader effort by the administration to tighten immigration enforcement through financial systems. Officials argue that collecting citizenship data would improve transparency and help authorities better understand who is participating in the U.S. banking system.
However, the proposal has sparked significant concern within the banking industry and among policy experts. Critics warn that requiring proof of citizenship could create major logistical challenges, particularly for large banks with millions of customers, and could disrupt access to financial services for individuals who lack readily available documentation.
Industry groups have also cautioned that such a requirement could disproportionately affect vulnerable populations, including those without passports or updated records, potentially leaving some Americans effectively “unbanked.”
Customers inside a bank, as financial institutions face potential new documentation rules.
The plan has already faced internal resistance, with some Treasury officials and banking representatives pushing back against its scope and feasibility. Reports indicate that earlier versions of the proposal may have been scaled back, possibly limiting requirements to new accounts rather than applying retroactively to all existing customers.
Despite the pushback, discussions around the policy continue, and no final version of the executive order has yet been released. If implemented, the measure would mark a significant shift in U.S. banking regulation and could set a precedent for linking financial access with immigration status.
Sources: CNBC, Bloomberg, The Hill, Reuters, American Banker
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