Trump's latest move could complicate banking for millions of Americans: 'It's a bad idea'
The Trump administration's stance against immigrants is well known across the globe. While it claims that it removed approximately 2.5 million illegal immigrants in 2025, the estimate of about 400,000 formal deportations contradicts that. As of February 2026, more than $40 million has been spent on the deportation of immigrants from America. Continuing these efforts, the administration has weighed in on using a method to build economic pressure on illegal immigrants. It seeks to completely lock immigrants out of the banking system.
As part of its latest crackdown on immigration, the Trump administration may make it mandatory for banks in the U.S. to confirm the citizenship of both current and potential clients. Meanwhile, the financial industry has expressed concern since this possible measure, which may be an executive order, could force banks to require other documentation to verify citizenship status. However, plans haven't been finalized yet, and conversations about other options and legalities are still ongoing. “It’s a bad idea. We are very alarmed,” a source from the finance sector told CNN.
The proposal by the Treasury Department would require financial institutions to ask for more documents, such as passports attesting to citizenship, from anyone looking to open or keep a bank account. There are currently no restrictions on non-citizens opening accounts, and there is no need to confirm their immigration status during the standard procedure, The Wall Street Journal reported.
Presently, banks are required to gather basic personal information, such as name, date of birth, and address, under "know your customer" regulations. This information is usually confirmed by identification documents. Additionally, they have to follow anti-money laundering regulations and notify the Financial Crimes Enforcement Network (FinCEN) of any suspect activity. Notably, banks are not required to gather or disclose citizenship data. “Verifying every bank customer’s citizenship status would be unworkable,” a source stated. There are still questions about the proposal's practical ramifications because around half of Americans do not possess a passport.
Under the Bank Secrecy Act, the Treasury may need to formally regulate changes to identity verification criteria made through FinCEN. Meanwhile, Senator Tom Cotton plans to propose legislation to prohibit unauthorized immigrants from using them. The White House has not yet formally announced anything regarding this matter. “Any reporting about potential policymaking that has not been officially announced by the White House is baseless speculation,” White House spokesperson Kush Desai stated. The debate over verifying bank accounts is related to a larger government attempt to limit access to administrative and financial services for non-citizens. The Trump administration has recently increased information sharing across agencies, limited certain benefits, and improved citizenship verification on federal paperwork, El País reported.
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