Treasury Secretary Scott Bessent said an executive order that would require banks to collect proof of citizenship from customers is “in process,” Bloomberg reported, describing a potentially sweeping new compliance mandate for U.S. financial institutions.

The proposed action would require banks to gather documents such as passports or other evidence of citizenship from customers, and could apply not only to new applicants but also to existing account holders, the news agency reported. The move would mark a significant expansion of President Donald Trump’s push to deter undocumented migration and would inject immigration-status verification more directly into the U.S. banking system. 

“I don’t think it’s unreasonable, because, why don’t we have information on who’s in our banking system?” Bessent said at a Semafor-hosted event cited by Bloomberg. Bessent’s remarks were originally reported by Semafor.

The proposal could complicate access to banking services for immigrants and U.S. citizens alike, Bloomberg reported. The outlet said there were about 183 million U.S. passports in circulation in 2025, compared with a population of more than 340 million, suggesting a passport-based requirement could create friction for a large share of consumers.

Behind the scenes, Treasury staff and banking industry groups have raised concerns about the feasibility of such a system. Some Treasury employees have been pressing for a softer approach under which banks would certify citizenship rather than directly verify immigration status while banking groups have warned that cutting people off from the financial system could have broader economic consequences, Bloomberg said. 

Read more at Bloomberg