Treasury Secretary Scott Bessent confirmed on Monday that an executive order mandating banks to collect citizenship information from customers is underway. The order, part of the Trump administration's broader immigration enforcement efforts, aims to verify the legal status of individuals in the U.S. banking system.
Core Facts
- Treasury Secretary Scott Bessent stated the executive order is 'in process' during an April 13 interview with Semafor.
- The order would require banks to collect citizenship information from customers, a move supported by some lawmakers but criticized by banking experts.
Policy Rationale and Support
Bessent argued the order is reasonable, stating, 'Why don’t we have information on who’s in our banking system?' He compared the U.S. system to the U.K., where authorities track residents in apartments to prevent foreign terrorist organizations from operating undetected.
Senator Tom Cotton (R-AR) has publicly supported the measure, writing to the Treasury Department to urge a review of rules allowing undocumented immigrants to access financial services. Cotton stated, 'Access to the American banking system is a privilege that should be reserved for those who respect our laws and sovereignty.'
Opposition and Concerns
Banking experts warn the order could leave millions of Americans without access to bank accounts, including some of Trump's own supporters. Critics argue the measure would do little to combat money laundering or fraud while disproportionately affecting certain communities.
White House spokesman Kush Desai has dismissed reports about potential policymaking as 'baseless speculation' unless officially announced by the administration.
Broader Context
The Trump administration has prioritized immigration enforcement since its January 2025 inauguration, including efforts to reduce the number of undocumented immigrants in the country. The banking order aligns with broader policies aimed at restricting access to public services and benefits for those without legal status.