Trump administration weighs citizenship requirement for Bank customers
The Trump administration is considering a policy that would require bank customers to provide proof of citizenship, such as passports, and would apply retroactively to existing accounts, people familiar with the talks said — a move company officials warn would be costly and difficult to implement.
Bank verification would be retroactive
People familiar with the talks said the proposal would force banks to solicit documentation from current customers as well as future ones. The plan would specify documents like passports as acceptable proof of citizenship; REAL IDs, which do not prove citizenship, would not be considered eligible.
Industry warnings: "a complete nightmare"
Trade and financial firms pushed back over logistical and political concerns. One financial services lobbyist called the idea a "complete nightmare" logistically and warned of potential pushback from GOP voters if ordinary customers were asked for proof — saying the administration might face resistance "until Joe MAGA in Alabama is asked to present his papers. " Another person familiar with the talks said that "verifying every bank customer's citizenship status would be unworkable, " arguing such a mandate could force "every bank in America to solicit documentation that many everyday Americans do not have on hand. " To put that into perspective, the U. S. government has spent the last 20 years trying to encourage adoption of the REAL ID, and even that form of documentation does not constitute proof of citizenship.
Unclear where Treasury stands; White House responds
A White House spokesperson, Kush Desai, said, "any reporting about potential policymaking that has not been officially announced by the White House is baseless speculation. " The Treasury Department did not comment. Industry officials noted that illicit-finance laws already require financial institutions to collect some personal information on their customers, but those rules do not specifically require proof of citizenship.
Firms pointed to a recent, related episode in which congressional Republicans floated taxing cash that non-citizens send to family members; that proposal likewise would have required financial institutions to collect proof of citizenship, and it prompted similar objections from firms during discussions last year.
Officials have not announced next steps, and it remains unclear whether the administration will move forward with an executive action. The White House statement that unannounced policymaking is "baseless speculation" stands as the most recent public comment on the talks.
