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•Curated by Copilot •2h ago

Bessent says bank citizenship proof order moving forward

Treasury Secretary Scott Bessent confirmed that a Trump administration executive order requiring banks to verify customers’ citizenship is “in process,” signaling a significant policy shift. The measure could affect millions without ready access to passports or birth certificates, including elderly, low-income, and rural Americans. Banking industry groups and some Treasury staff have warned it could be costly, disruptive, and challenging to implement fairly.

Bessent confirms executive order progress

Speaking at the Semafor World Economy’s inaugural Treasury Secretary Dinner at the Library of Congress, Scott Bessent said an executive order requiring banks to collect proof of citizenship is “in process.” He argued the policy is reasonable, citing foreign examples like the U.K. where authorities track residents closely. The plan reflects President Donald Trump’s ongoing push since January 2025 to tighten immigration enforcement, with support from allies like Senator Tom Cotton. Newsweek + 2

Newsweek

Potential impact on millions of Americans

Analysts warn the order could affect millions, including those without passports or birth certificates, elderly citizens born before standardized record-keeping, and residents in states with slow or costly document replacement. Only half of Americans hold passports, with significantly lower rates in rural states that have supported Trump in recent elections. Students with mismatched IDs and low-income individuals relying on basic accounts could also be at risk of losing banking access. Newsweek + 1

Unclear policy details raise questions

Reports indicate the order would apply to both new and existing bank customers, requiring documents like passports or birth certificates to verify citizenship. Key details remain undefined, including which documents will be accepted, how banks will treat unclear or missing records, and whether exceptions will be made for vulnerable groups. The uncertainty leaves both the public and financial institutions waiting for clearer guidance on implementation. Newsweek + 1

Industry and internal resistance emerge

Financial institutions and lobbyists have criticized the proposal as a logistical 'complete nightmare' that could harm the broader economy. Some Treasury staff have pushed for alternatives, such as allowing banks to certify citizenship rather than collect documentation directly. Internal resistance and warnings from industry groups highlight concerns over compliance costs, operational challenges, and the risk of excluding legitimate customers from the financial system. Newsweek + 1

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Bessent says bank citizenship proof order moving forward