Treasury Secretary Confirms Trump Citizenship Banking Order 'In Process' - Millions Could Face Account Access Issues

A potentially game-changing executive order requiring banks to collect proof of citizenship from all customers is reportedly in development, according to Treasury Secretary Scott Bessent's recent confirmation to news outlet Semafor.

What We Know So Far

During a 23-minute interview at the inaugural Treasury Secretary Dinner at the Library of Congress, Bessent explicitly stated that an executive order mandating citizenship verification for banking customers is "in process." When pressed about the policy, Bessent defended the concept, asking "Why don't we have information on who's in our banking system?"

The Treasury Secretary drew comparisons to international banking practices, particularly citing the United Kingdom's strict financial regulations. "I have a place in the UK; they want to know who lives in every apartment," Bessent explained, adding concerns about potential foreign terrorist organizations accessing the U.S. banking system.

Banking Industry Pushback Expected

In a subsequent CNBC interview, Bessent acknowledged that bank executives "don't think it's their job" to report citizenship status. However, he firmly countered this resistance, stating: "If Treasury and the banking regulators say it's their job, it's their job."

The Treasury Secretary emphasized that knowing your customer should include understanding their legal status: "How do you know your customer if you don't know if they have legal or illegal status, whether a U.S. citizen or green card holder?"

Potential Impact on Millions of Americans

The implications of this executive order could be far-reaching. According to 2025 University of Maryland research, millions of Americans lack easy access to proof of citizenship documents. The situation is particularly concerning for married women, many of whom don't possess birth certificates matching their current legal names after taking their husbands' surnames.

Current reporting suggests the policy would be retroactive, applying to existing bank customers rather than just new account holders. Additionally, REAL ID-compliant documents, which don't prove citizenship, would reportedly not satisfy the new requirements.

Policy Details Still Emerging

While Bessent confirmed the order's development, specific implementation details remain unclear. The White House has neither confirmed nor denied the reports, providing only a vague statement about exploring "ways to protect our banking system from unacceptable credit risks."

The administration's statement emphasized ensuring "banking services remain available and affordable for all Americans," though critics question how requiring citizenship documentation aligns with this goal.

International Precedent Cited

Bessent repeatedly referenced international banking practices to justify the proposed requirements. "Every other country does it. Every other country," he insisted during his CNBC appearance, though the network noted there's "no universal mandate" for citizenship information in overseas banking.

The Treasury Secretary's personal experience with UK banking regulations, including annual "leave to remain" registration requirements, appears to have influenced his perspective on American banking oversight.

Timeline and Implementation Questions

The executive order's timeline remains uncertain. Initial reports about the administration considering such measures surfaced in February 2026, with anonymous sources suggesting the policy was under review. Bessent's confirmation marks the first named official acknowledgment of the plan's active development.

Further details about implementation procedures, acceptable documentation, and potential exemptions await official announcement. The banking industry will likely need significant lead time to develop systems capable of handling citizenship verification for millions of existing customers.

Looking Ahead

As this story develops, key questions remain about enforcement mechanisms, compliance costs, and the practical challenges of retroactive documentation requirements. The executive order's ultimate impact will depend heavily on implementation details that have yet to be publicly disclosed.

The confirmation of this policy's development represents a significant shift in banking oversight philosophy, potentially affecting how millions of Americans interact with financial institutions.