Trump Administration Weighs Plan to Require Banks to Collect Citizenship Data

24 February 2026

Donald Trump is considering a possible executive order that would require banks to make sure customers are U.S. citizens to create or keep their accounts, according to a new report (AP)

A new proposal under consideration in Washington could reshape the relationship between America’s banking system and federal immigration policy. Officials within the Trump administration are exploring whether to require banks across the United States to collect citizenship information from their customers, a move that could significantly expand the amount of personal data financial institutions gather and potentially transform how millions of people interact with the banking system.

The plan, still under discussion, may come in the form of an executive order or another regulatory action. If adopted, banks could be required to request documentation proving citizenship or immigration status from both new and existing customers. Such a policy would represent a major shift from current practices, where financial institutions collect identifying information primarily to prevent money laundering and financial crimes rather than to verify citizenship.

At present, banks follow federal “know your customer” rules that require them to gather basic personal details including a customer’s name, address, date of birth and taxpayer identification number. These requirements are designed to help authorities track suspicious financial activity and prevent illegal transactions. However, they do not specifically require banks to determine or verify whether someone is a U.S. citizen.

The proposal under discussion would go considerably further. According to people familiar with the deliberations, financial institutions might be asked to collect additional documents such as passports or other proof of citizenship. In some versions of the plan being debated internally, the rules could apply not only to individuals opening new accounts but also to millions of existing customers whose records currently lack citizenship data.

Supporters of the idea see it as part of a broader push by the administration to strengthen immigration enforcement. By requiring banks to gather more information about account holders, officials believe the government could gain additional tools to identify individuals living in the country without legal status and limit their access to financial services. Some advocates of tougher immigration policies argue that access to the formal banking system is a privilege that should be restricted to people who comply with immigration laws.

Yet the proposal has sparked concern among bankers, legal scholars and consumer advocates who worry about the consequences of bringing immigration enforcement into the financial sector. Banks would likely need to redesign account opening procedures, train employees to verify documents and update data systems capable of storing new categories of personal information. Executives at large financial institutions have warned that implementing such requirements could create operational burdens across thousands of branches and digital platforms.

Critics also argue that the measure could unintentionally restrict access to banking services for lawful residents and citizens who lack readily available documentation. A significant portion of the U.S. population does not possess a passport, which could complicate efforts to prove citizenship if that document becomes the primary verification tool. Financial experts say such barriers could push some people toward alternative financial services such as check cashing stores or informal networks that often charge higher fees and operate with fewer regulatory safeguards.

Legal questions loom as well. While the federal government has broad authority to regulate banks and enforce immigration laws, the intersection of those two powers could face challenges in court. Scholars note that expanding banks’ responsibilities beyond financial crime monitoring into immigration verification may raise questions about privacy, regulatory authority and due process.

For now the proposal remains under review within the Treasury Department and other agencies, and officials have not finalized any decision. The White House has also cautioned that internal policy discussions do not necessarily translate into immediate action. Still, the mere consideration of the policy reflects how immigration enforcement has become intertwined with multiple sectors of American governance.

If implemented, the measure would mark one of the most significant changes in the responsibilities of U.S. banks in decades. By turning financial institutions into potential checkpoints for citizenship verification, it would reshape the everyday mechanics of opening and maintaining a bank account while highlighting the growing intersection between economic infrastructure and national policy priorities.