White House Pauses Plan for Banks to Collect Customers’ Citizenship Information

The Trump administration had planned to issue an executive order requiring U.S. banks to collect passports or other proof of citizenship from new and existing customers, while directing the U.S. Treasury Department to tighten KYC, anti-money laundering and national security checks. Current rules focus primarily on verifying identity rather than nationality. The proposed threshold could deny banking services to immigrants and U.S. citizens without adequate documentation.

The Washington Post disclosed the proposal on February 24, 2026. The White House decided to pause it on March 20 after opposition from major Wall Street banks and community banks. The industry warned that retroactive reviews of existing customers would increase technology and staffing burdens and drive away clients. As of that date, the draft had not been approved, and the White House had announced neither an implementation date nor an implementation budget.