According to Semafor, people familiar with the matter say the Trump administration is considering a new rule that would require banks to collect proof of customers’ citizenship, such as a passport, when opening accounts. The policy would apply retroactively, meaning banks would need to request such documents from both existing and future customers. Because REAL ID does not prove citizenship, it would not be accepted as valid documentation.
The proposal has drawn strong opposition from the banking industry. One financial-services lobbyist described the plan as an “absolute nightmare” operationally and warned it could trigger backlash from Republican voters by leading to “MAGA supporters in Alabama being asked to show papers.” Another person familiar with the matter said verifying the citizenship of every customer is “unworkable” and could force banks to demand documents from ordinary Americans who may not be able to produce them, making implementation extremely difficult.
White House spokesperson Kush Desai responded that any reporting on policies that have not been formally announced is “baseless speculation.” It remains unclear where the Treasury Department stands on the proposal. According to the report, the policy could move forward through a presidential executive order rather than legislation. Industry participants are concerned it would create enormous implementation costs and complexity, similar to the controversy that emerged last year when congressional Republicans proposed taxing remittances sent by non-citizens.
