The proposal requiring banks to collect proof of citizenship from customers is currently under review, building on discussions that began in February. As it stands, proof of citizenship is not required to open a bank account in the United States, a situation that may soon change.
Scott Bessent, a key figure in the discussions, stated, “I don’t think it’s unreasonable… Why don’t we have information on who’s in our banking system?” He further emphasized the importance of verifying identities, citing practices in the UK where residency information is rigorously collected.
The initiative could apply to both new customers and existing account holders, framing the requirement as a matter of transparency. However, industry groups have expressed concerns regarding the feasibility and cost of implementing such a requirement.
Banks have warned that requiring documentation could disrupt access to financial services, particularly for individuals who may not have ready access to citizenship verification documents. Critics argue that many Americans lack the necessary documentation, which could create significant barriers to banking.
Internal resistance has also emerged within the Treasury Department regarding the proposal, highlighting the complexities involved in its potential implementation. As of 2025, there were approximately 183 million U.S. passports in circulation, while the U.S. population exceeds 340 million, raising questions about the accessibility of citizenship proof for all citizens.
Details remain unconfirmed regarding the formal policy announcement, and the exact implementation details and timeline are unclear. Observers are closely monitoring the situation as discussions continue within the government and the banking sector.
As stakeholders evaluate the implications of this proposal, the debate around citizenship verification in banking is expected to intensify, with various parties advocating for different approaches to the issue.
