US Treasury Weighs Executive Order Requiring Citizenship Verification for Banking

U.S. Treasury Secretary Scott Bessent confirmed that an executive order is in development to mandate banks to collect citizenship information from their customers. Under the proposed policy, account holders may be required to submit passports to verify their legal status, aligning with the Bank Secrecy Act and the USA PATRIOT Act. This initiative follows calls from lawmakers, including Senator Tom Cotton, to restrict illegal immigrants' access to the U.S. financial system. The administration aims to bolster national security and ensure that banking privileges are reserved for those with verified legal standing. However, the move is expected to increase compliance burdens for major financial institutions such as JPM and BAC, potentially reducing the addressable market of depositors. Analysts suggest that these regulatory shifts could create operational friction within the retail banking sector.