The Trump administration plans to require banks to collect customer citizenship information, with the Treasury Department leading the assessment.

According to the Wall Street Journal, the Trump administration is evaluating the possibility of requiring U.S. banks to systematically collect customer citizenship information through executive orders or other measures. The plan is being assessed by the U.S. Department of the Treasury and may involve requiring banks to request additional identification documents such as passports from both new and existing customers as a prerequisite for opening or maintaining bank accounts in the United States. This move is viewed as the latest effort by the White House to extend its crackdown on illegal immigration into the financial system, and no official details or timeline for implementation have been announced.

Policy Background: Immigration enforcement boundaries extending into the banking system

Since taking office, the Trump administration has continued to strengthen immigration enforcement. The financial measures under consideration represent a new expansion of enforcement boundaries. Sources familiar with the matter indicate that the government is considering authorizing the Financial Crimes Enforcement Network (FinCEN) to serve as the enforcement agency for information collection. FinCEN is a bureau under the U.S. Department of the Treasury responsible for enforcing anti-money laundering (AML) and counter-terrorism financing laws, and it has the authority to require financial institutions to report specific transaction data.

White House spokesperson Kush Desai responded to media inquiries by stating, “Any reports about potential decisions that have not yet been officially announced by the White House are baseless speculation.” An official from the Trump administration also confirmed that relevant discussions are ongoing within the government but have not yet received approval.

Key differences between current KYC regulations and proposed measures

Current “Know Your Customer” (KYC) regulations: Require banks to collect passports and Social Security numbers to prevent money laundering and criminal activities, but do not include citizenship information.

Proposed new measures: May require banks to systematically collect and record customers’ citizenship status as a condition for opening or maintaining accounts.

Legal gaps: Currently, there is no law in the United States prohibiting banks from providing accounts to non-citizens, and existing regulations do not mandate routine citizenship declarations.

FinCEN enforcement framework and Minnesota policy precedent

In January 2025, FinCEN issued a special order to two counties in Minnesota, requiring local banks and remittance providers to report cross-border transactions exceeding $3,000—well below the usual reporting threshold of $10,000. This order was prompted by a high-profile welfare fraud scandal that drew national attention. Subsequently, the Trump administration dispatched additional ICE (U.S. Immigration and Customs Enforcement) agents to Minnesota and continued to expand law enforcement presence during subsequent unrest.

The banking industry’s compliance efforts with Minnesota’s order have faced significant challenges. Insiders reveal that the industry believed the $10,000 cash reporting threshold should be raised rather than lowered, and the sudden reduction to $3,000 has dramatically increased compliance costs. Recent discussions about collecting citizenship information have caused concern within the banking sector, with many fearing that if such expanded financial surveillance measures are implemented, they will further increase compliance burdens and significantly impact access to banking services for legal immigrants and non-citizen customers.

Frequently Asked Questions

Q: Why is the Trump administration considering requiring banks to collect citizenship information?
A: This is viewed as an extension of efforts to combat illegal immigration through financial means. By requiring banks to collect and record citizenship data, the government aims to identify and restrict illegal immigrants’ access to the U.S. financial system, complementing broader immigration enforcement measures.

Q: How does this proposed measure differ from current KYC regulations?
A: Current KYC rules require banks to collect information such as passports and Social Security numbers primarily to prevent money laundering, but do not include citizenship status. The proposed measures would add a requirement to collect and record citizenship information, establishing a new prerequisite for account opening or maintenance for non-citizens—something not currently mandated under existing law.

Q: What role does FinCEN play in this initiative?
A: FinCEN (Financial Crimes Enforcement Network) is a bureau within the U.S. Department of the Treasury responsible for enforcing AML and counter-terrorism financing laws. It has the authority to issue special reporting orders to financial institutions. Sources indicate that the government is considering leveraging FinCEN’s authority to serve as the enforcement body for these new measures, expanding the scope of citizenship data collection under existing legal frameworks.