The U.S. banking landscape is on the verge of significant change as an executive order requiring banks to collect proof of citizenship from customers is currently in process. This initiative builds on discussions reported in February about the necessity of verifying citizenship for banking access.
Currently, proof of citizenship is not required to open a bank account in the United States, a situation that could soon change. The proposed requirement may apply not only to new customers but also to existing account holders, raising questions about the logistics of implementation.
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 compared the situation to regulations in the UK, where authorities require detailed information about residents in every apartment.
However, the initiative has sparked significant concern among industry groups regarding its feasibility and cost. Banks warn that requiring documentation could disrupt access to financial services, particularly for those who may not have ready access to citizenship verification documents.
Internal resistance has also emerged within the Treasury Department regarding the proposal. Critics argue that many Americans do not possess the necessary documents for citizenship verification, which could create barriers to banking access.
As of 2025, there were approximately 183 million U.S. passports in circulation, while the U.S. population exceeds 340 million. This discrepancy highlights the potential challenges in verifying citizenship for a large segment of the population.
Initial reactions from observers suggest that the logistical implications of verifying every customer’s citizenship status would be “unworkable.” One industry insider described the idea as a “complete nightmare” logistically.
Details remain unconfirmed regarding the formal policy announcement, and the exact implementation details and timeline are still unclear. As discussions continue, the future of the Bessent bank citizenship proof initiative remains uncertain.
