The secretary of Tesouro of Estados Unidos, Scott Bessent, stated that banks need to prepare to collect citizenship information from customers. Ele made the statement during an event at Washington on Tuesday. Bessent participated in Invest in America Forum organized by CNBC.
The administration is discussing an executive order that would expand current identity verification rules. Bancos already follow “know your customer” rules to prevent money laundering and fraud. Essas rules require data such as name, address, date of birth and Seguro Social or ITIN number. The proposed change would include specific verification of citizenship or legal residency status.
Statements from the secretary of Tesouro
Scott Bessent reinforced that banks must comply with orders from Tesouro and banking regulators. Ele questioned why foreigners without clear status can open accounts. Bessent cited practices in other countries, where citizenship information is more required when accessing banking services.
He participated in an interview with journalist Sara Eisen. Bessent also spoke about the topic at an event organized by Semafor this week. The executive order under discussion is in process, according to him. The move is part of the administration’s broader initiatives to link immigration policy to data collection in public and private systems.
- Current banks verify identity, but do not require proof of citizenship to open an account
- Existing rules are based on laws such as Bank Secrecy Act and USA PATRIOT Act
- Proposal would include additional documents such as a passport or birth certificate
- Real ID would not be accepted as sufficient evidence under the new guidance discussed
Reaction from banking institutions
Banks expressed resistance to the idea of taking on extra responsibility for checking immigration status. The current task already includes risk assessment and transaction monitoring. An additional requirement could increase operational and administrative costs. Estimativas from think tanks indicate significant increase in working hours on checks.
Experts point out that many clients use ITIN to pay taxes even without citizenship. Access to bank accounts allows people to contribute to the formal economy and avoid operating solely with cash. Restrições could affect the volume of deposits and financial inclusion.
Support on Congresso
Senator Tom Cotton, Republican Arkansas, introduced the bill in March. The proposal, called Know Your American Customer Act, requires banks and credit unions insured by the FDIC or NCUA to verify that new customers are U.S. citizens, permanent residents or valid visa holders. The text adds a legal status check in addition to the already required identity documents.
Cotton sent a letter to Tesouro in October last year asking for a review of the current rules. Ele argues that access to the banking system should be restricted to those who respect immigration laws. Republicanos have expressed general support for the idea of greater control over who uses financial services in Estados Unidos.
Context of current account opening rules
In Estados Unidos, you do not need to be a citizen to open a bank account. Instituições Financial institutions verify identity to comply with obligations against financial crimes. Clientes provide basic documents and, in many cases, tax number. Estrangeiros with valid documents, including consular cards in some cases, can open accounts.
The proposal under discussion would change this situation by requiring explicit proof of citizenship or legal status. Bessent stated that “illegals have no right to be in the banking system”. Ele compared to requirements in other countries, where banks ask for more details about residence and nationality.
Possible effects on bank operations
Analysts warn of high costs for verifying millions of existing and new accounts. A March analysis estimated between 30 million and 70 million additional hours of work and costs of between $2.6 billion and $5.6 billion. The impact would be greater on retroactive checks on old customers.
Banks fear an increase in customers without bank accounts, which would reduce deposits and complicate everyday transactions. Pessoas without citizenship documents they could migrate to the informal economy. Especialistas in financial policy highlight that banking access helps with social mobility and regular payment of taxes.
Tesouro has not yet released the final text of the executive order. Bessent indicated that the measure is moving forward and that banks must prepare to implement it. Reguladores Bank employees would participate in defining the technical rules.
Details of the proposal under discussion
The executive order in process would expand “know your customer” obligations. Bancos would have to request additional documents to confirm whether the customer is a citizen, permanent resident or is in the country with a valid visa. Verification could occur both when opening new accounts and when reviewing existing accounts.
Bessent said the goal is to find out who participates in the American banking system. Ele mentioned concern about possible national security risks. The initiative connects with other actions by the administration to strengthen citizenship checks in areas such as elections and the census.
The discussion takes place amid debates about immigration and financial security. Nenhum Official text of the executive order has been published to date. Tesouro and regulators are still working out the operational details.
