Banks Could Soon Collect Citizenship Information, Trump's Treasury Secretary Says

It’s customary for banks in the U.S. to collect general information about a person, like their name, birth date, and Social Security number. This helps prevent fraud and keeps track of who is adding and withdrawing money from the bank.

As of now, banks aren’t required to collect citizenship data on customers, but that could be changing in the near future, at least based on comments made by Treasury Secretary Scott Bessent in a conversation with CNBC’s Sara Eisen on April 15, 2026, per CNBC.

While banks don’t seem to be fond of the idea of adding citizenship status to their information checklist, Bessent said, “If Treasury and the banking regulators say it’s their job, it’s their job.” And it appears they may be on the verge of passing an executive order that would require this. So what would that actually mean? If someone couldn’t provide proof of citizenship or permission to be legally in the U.S., would they be reported? Here’s what Bessent said.

Donald Trump and his administration have made it clear how far they’re willing to go to implement immigration reform and remove undocumented immigrants from the U.S. Requiring banks to collect citizenship information on customers would only push those efforts further.

Right now, banks follow a regulation known as “Know Your Customer,” or KYC, which, per SoFi, is meant to help prevent fraud and deter money laundering and other illegal financial activity.

Adding verification of citizenship status would add another layer to the vetting process, though it seems not everyone believes it’s the best approach to take. But according to Treasury Secretary Scott Bessent, he seems on board with the Trump administration’s efforts.

While speaking with CNBC, he said, “Why can unknown foreign nationals come and open a bank account? Our bank executives’ job is to know your customer. How do you know your customer if you don’t know if they have legal or illegal status, whether they are a U.S. citizen or green card holder?”

He also argued that when you travel overseas, citizenship is something many banks require, adding, “Every other country does it. Every other country. ... There should be stricter rules.” He went on to say that undocumented immigrants “don’t have a right to be in the banking system.”

So what could that mean for people who would have to provide this information, and even current customers? Would banks have to go back and ask existing account holders for proof of citizenship status? And what would they do with that data once it’s collected? It could make it easier to monitor immigrants living in the U.S. on valid visas or work authorization, and even track when their status expires. Or, it could lock immigrants out of receiving banking services.

There are plenty of people on board with Bessent and the push to require U.S. banks to collect citizenship data, but there are also many who worry it could cause the banking system to collapse. In a Reddit thread with over 12,000 votes, one person pointed out that by limiting who can open a bank account or use services, it could disrupt banks and other companies’ operations since “the economy depends on money flowing.”

It could also push those who don’t want to comply to rely more on cash instead of banks, which wouldn’t help the system either.

And that lines up with what another commenter shared, saying they believe the whole point of doing this is to collapse the economy “so the super wealthy can buy everything on sale.”