The Trump administration is considering a new requirement for U.S. banks to verify the citizenship status of both current and prospective customers, as part of its ongoing immigration enforcement measures, according to sources familiar with the discussions. This potential mandate could be issued through an executive order, which has sparked significant concern within the banking industry.
Industry insiders warn that such a requirement would obligate banks to request a new range of documentation, potentially including passports and other forms of identification that confirm a customer’s citizenship status. While no definitive plans have been confirmed, these discussions indicate that the administration is weighing its legal options and considering various approaches.
A source within the financial sector expressed alarm at the prospect, stating, “It’s a bad idea. We are very alarmed.” Concerns focus on the belief that this initiative may force banks into the role of enforcing the administration’s immigration policies, particularly in efforts aimed at deporting undocumented immigrants.
The likelihood of President Donald Trump moving forward with an executive order remains uncertain, although reports regarding this development first surfaced in The Wall Street Journal. The White House has not provided confirmation or denial of the potential order, with spokesperson Kush Desai referring to such reports as “baseless speculation.”
Currently, while banks follow guidelines under anti-money-laundering laws and know-your-customer regulations—which require them to gather information about where their customers live—they do not typically collect or verify citizenship details. Should an executive order be enacted, banks might be required to retroactively obtain citizenship information from current customers and gather this data from new clients as well. One industry source pointed out, “Verifying every bank customer’s citizenship status would be unworkable.”
Major banks and industry groups have thus far refrained from commenting on the issue. This situation arises against a backdrop of the Trump administration’s broader immigration crackdown, which has at times faced resistance from within different federal bodies. Last year, as previously reported, nearly 50 senior information technology experts at the Internal Revenue Service were placed on administrative leave amidst plans to share taxpayer information with immigration officials—a move that was later legally challenged and blocked by a federal judge.
A spokesperson for the Treasury Department stated that employees were placed on leave but denied any connection to accessing IRS data for enforcement of immigration laws.
In recent moves reflective of its stance on financial services, the Trump administration has also sought to address perceived biases against conservative individuals in banking. Last year, Trump signed an executive order aimed at penalizing banks that limit services based on a customer’s political or religious beliefs. Additionally, he has initiated a lawsuit against JPMorgan Chase after the bank chose to sever ties with him following the events of January 6, 2021. JPMorgan has countered that the lawsuit lacks merit, marking another chapter in the ongoing interplay between the administration and financial institutions.
