Treasury Secretary’s Citizenship Data Plan Sparks Outrage and Economic Fears
Treasury Secretary Scott Bessent has stated that U.S. banks must be prepared to collect citizenship data on customers, indicating an executive order to this effect is in process. This initiative aligns with President Trump’s broader immigration policy, which aims to link information collection with immigration enforcement. While current “Know Your Customer” rules focus on identity verification for anti-money laundering purposes, Bessent argues that knowing a customer’s citizenship status is crucial for knowing the customer. This proposed mandate, which would require banks to verify if individuals opening accounts are U.S. citizens, permanent residents, or present on valid visas, faces potential resistance from banks concerned about increased administrative costs and economic impacts.
John Q. Hosedrinker