The Trump administration is weighing an executive order that would require banks to collect citizenship information from customers as part of a broader immigration enforcement strategy. This move would enlist financial institutions in the government's illegal-immigration crackdown, potentially transforming how banks handle customer data and their relationship with federal authorities.

If implemented, the policy would mandate that financial institutions verify and report citizenship status during account opening and ongoing transactions. Banks would need to develop new compliance systems and train staff to handle sensitive immigration-related inquiries. This could create significant operational challenges for banks already navigating complex regulatory requirements.

The proposal raises substantial concerns about data privacy, customer trust, and potential discrimination. Banking industry groups have historically opposed such measures, warning they could drive undocumented immigrants away from the formal financial system and push transactions underground. The policy would also likely face legal challenges regarding federal authority to compel private businesses to enforce immigration law.