Trump Administration Considers Forcing Banks to Verify Customers’ Citizenship

The Trump administration is considering a new policy that would require US banks to verify the citizenship status of both existing and new customers, according to sources familiar with the discussions. Officials are exploring the move as part of President Donald Trump’s broader immigration crackdown.

One source said the administration could implement the measure through an executive order, although officials have not finalized the plan. If approved, banks might have to request additional documentation from customers, including passports or other proof of citizenship — a step the industry has never required before.

trump weighs bank citizenship rule

Financial industry leaders expressed alarm over the proposal. One source described the idea as “a bad move” and warned that banks fear the administration wants them to assist in identifying undocumented immigrants for deportation efforts.

The White House declined to confirm the discussions. Spokesperson Kush Desai dismissed reports about unannounced policymaking as speculation.

Currently, US banks must comply with anti-money-laundering and “know-your-customer” regulations, which require them to verify identity and address. However, they do not collect or verify citizenship status. If Trump signs such an order, banks could be required to retroactively gather citizenship information from existing customers and collect it from new account holders.

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Industry representatives argue that verifying every customer’s citizenship would be operationally difficult and legally complicated. Major banks and trade groups have so far declined public comment.

The proposal emerges amid broader tensions between the administration and financial institutions. In the past year, Trump officials placed dozens of senior IRS technology employees on administrative leave while exploring plans to share taxpayer data with federal immigration authorities — a move that a federal judge later blocked.

At the same time, Trump has accused banks of unfairly restricting services to conservatives. Last year, he signed an executive order targeting what he described as the “debanking” of customers based on political or religious beliefs. Trump also filed a lawsuit against JPMorgan Chase after the bank ended its relationship with him following the January 6, 2021, Capitol riot. JPMorgan has denied wrongdoing and called the lawsuit baseless.

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