Treasury Secretary Scott Bessent has signaled that U.S. banks should prepare for new executive orders requiring the collection of citizenship data from customers. Speaking at the Invest in America Forum, Bessent emphasized that if the Treasury mandates this task, banks must comply. This move aligns with President Trump’s broader immigration policy, which aims to tighten regulations on financial access for non-citizens.

The potential implications for the financial sector are significant. If implemented, the new rules could require banks to verify the citizenship status of account holders, which may lead to increased operational costs estimated between $2.6 billion and $5.6 billion. Additionally, this could restrict access to banking services for millions of undocumented immigrants, potentially pushing them further into a cash economy and limiting their ability to contribute to economic growth.

Market professionals should watch for the regulatory developments surrounding this executive order, as it could reshape customer verification processes and impact banks’ operational frameworks, ultimately influencing their financial performance.

Source: cnbc.com