Sources familiar with the matter informed CNN that the Trump administration is contemplating a fresh mandate for American financial institutions, requiring them to verify citizenship status for both current and prospective clientele, as part of the President’s intensified immigration enforcement push.
This potential move, which one source suggested might take the form of an executive order, has ignited anxieties within the financial sector, raising fears that banks could be compelled to seek an unprecedented array of documentation from customers, such as passports and other proof of nationality. The source cautioned, however, that these proposals are not finalized, and various alternative approaches and legal authorities are still under review.
“This is a terrible notion. We are extremely concerned,” a source within the financial industry conveyed to CNN.
The industry source further noted that banking executives are worried this directive aims to enlist them in the administration’s efforts to deport undocumented immigrants.
It remains uncertain whether President Donald Trump will ultimately issue the executive order, the possibility of which was initially reported by The Wall Street Journal.
The White House has neither confirmed nor denied the speculated executive order or any other potential actions.
“Any reports regarding prospective policy that have not been officially announced by the White House constitute baseless speculation,” stated White House Press Secretary Kush Desai in a released statement.
While banks are currently obligated to adhere to anti-money laundering and “know your customer” regulations, which include noting a client’s residence, they do not systematically collect or authenticate citizenship information.
Should Trump sign such an executive order, banks might be tasked with retrospectively obtaining citizenship data from existing customers in addition to verifying it for all newcomers, an industry source indicated.
“Verifying the citizenship of every bank customer would be an impossible undertaking,” the source remarked.
Representatives for major banks and industry associations declined to provide any commentary.
The Trump administration’s immigration-related measures have, at times, generated apprehension within certain segments of the federal government.
As CNN previously detailed, up to 50 senior IT specialists at the U.S. Internal Revenue Service—including some leading cybersecurity experts—were placed on administrative leave last year while Trump officials finalized plans to share taxpayer data with federal immigration enforcement agencies. This endeavor faced legal challenges and was ultimately blocked by a federal judge late last year.
A Treasury Department official at the time acknowledged the furloughs but denied any connection to granting immigration enforcement access to IRS data.
These discussions are occurring while the Trump administration pursues actions against what it perceives as the “debanking” of conservatives. Last year, Trump issued an executive order aimed at penalizing financial institutions for curtailing services to customers based on their political or religious affiliations.
More recently, Trump initiated a lawsuit against JPMorgan Chase, challenging its decision to terminate his banking relationship following the January 6, 2021, Capitol incident. JPMorgan has asserted that the lawsuit lacks merit.
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