Washington D.C. – U.S. Treasury Secretary Scott Bessent has confirmed that a forthcoming executive order, which would mandate banks to collect citizenship information from their customers, is "in process." The announcement was made during an interview at the Semafor World Economy’s inaugural Treasury Secretary Dinner at the Library of Congress.
Secretary Bessent defended the controversial measure, stating, "I don’t think it’s unreasonable, because: Why don’t we have information on who’s in our banking system?" He drew a parallel to international practices, noting, "I have a place in the UK; they want to know who lives in every apartment — and how do we know that it’s not part of a foreign terrorist organization?"
The proposed executive order is part of a broader push by the Trump administration to tighten immigration controls and could apply to both new and existing bank customers. This initiative has been under discussion for several months, with reports indicating that the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department has been tasked with exploring options.
Industry reactions suggest significant challenges, with one financial services lobbyist quoted by Semafor calling the idea a "complete nightmare" logistically. Concerns have also been raised about the potential burden on U.S. citizens, as only about half of Americans possess a valid passport, and current identification like REAL IDs would not suffice as proof of citizenship.
Senator Tom Cotton (R-AR) has publicly supported the administration's efforts, stating he "strongly support[s] President Trump taking action to prevent illegal migrants from accessing our banking system." Cotton has also indicated plans to introduce legislation on the matter, following a previous letter to Secretary Bessent requesting an investigation. The move is seen as a significant escalation in the administration's efforts to discourage undocumented migration to the U.S.
