Treasury Secretary Scott Bessent is preparing banks to collect citizenship data on customers, warning that if regulators require it, banks must comply. Speaking at the Invest in America Forum in Washington, D.C., Bessent said banks' job is to know their customers, which includes verifying citizenship status.

Currently, U.S. banks verify identity using Social Security numbers, ITINs, names, and addresses under know your customer rules and laws like the Bank Secrecy Act and USA Patriot Act. Bessent questioned how banks can truly know their customers without citizenship information, noting that other countries already require such data.

Republican lawmakers support the initiative. Senator Tom Cotton introduced legislation requiring FDIC and NCUA-insured institutions to verify citizenship or legal residency. Policy experts warn the mandate could add 30-70 million paperwork hours and $2.6-$5.6 billion in costs. Bessent maintains that undocumented immigrants don't have a right to banking access, framing the requirement as a matter of national security and immigration enforcement.