The Trump administration is mulling an executive order or a different action that would have banks collecting citizenship information from their customers, according to reports.
The Wall Street Journal reported Tuesday that Treasury Department officials have discussed steps that could have banks gathering citizenship information from customers in a move that would align with Trump’s crackdown on immigrants living in the U.S. illegally.
According to sources familiar with the matter, the action could ultimately direct banks to request an unprecedented new category of documents — such as a passport — from customers looking to open or maintain accounts.
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The report said the discussions have worried banks, some of the sources said, as executives consider operational burdens and the legal risks of imposing new documentation standards on millions of customers.
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Under existing "know-your-customer" rules, banks are required to collect certain identifying information to guard against money laundering and financial crimes.
That typically includes a customer’s name, date of birth, address and taxpayer identification number and, in some cases, a passport or Social Security number.
Banks are not required to collect or verify citizenship status specifically, and there is no prohibition on opening accounts for noncitizens living in the U.S. Banks also do not routinely share customers’ citizenship information with the federal government.
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One option also under consideration is having the Treasury Department’s Financial Crimes Enforcement Network collect the information, according to people familiar with the matter.
One White House official reportedly said the potential executive order has been discussed within the Treasury Department but has not been approved.
Sen. Tom Cotton, R-Ark., shared a letter online that he had sent Treasury Secretary Scott Bessent last year and said the "American banking system is a privilege that should be reserved for those who respect our laws and sovereignty."
"I strongly support President Trump taking action to prevent illegal migrants from accessing our banking system," Cotton wrote in an X post Tuesday.
FOX Business reached out to the White House for comment.
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