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Treasury Signals Executive Order To Make Banks Verify Customers’ Citizenship

The proposal would shift U.S. banking from identity checks to nationality verification as well.

Overview

  • Treasury Secretary Scott Bessent said an executive order is in process that would make banks collect customers’ citizenship information.
  • He told bank leaders to prepare for the change and said Real ID cards would not count as proof of citizenship.
  • Key details remain unsettled, including which documents will qualify and whether existing accounts will face new checks.
  • Banks and policy analysts warn of heavy compliance burdens, estimating 30 to 70 million extra paperwork hours and $2.6 to $5.6 billion in costs.
  • Experts say many lawful residents without passports or easy access to birth records could lose banking access, which could push more people into cash-only life.