By Theodore Bunker | Friday, 20 March 2026 03:55 PM EDT
President Donald Trump’s administration has delayed a proposed executive order that could have required banks to gather more information about customers’ immigration status after major financial institutions and community lenders pushed back on the idea. Sources familiar with the discussions confirmed the delay occurred following industry concerns.
The proposal had been under development as part of the administration’s immigration enforcement agenda. Banking industry representatives told officials that forcing millions of customers to verify citizenship would be impractical, costly, and disruptive.
The White House has not issued such an order as of Friday, and the administration is still working on an immigration-related banking measure. A White House official denied serious consideration of broad audits of current customers, noting any implementation might apply only to new accounts.
The plan under discussion would have expanded “know your customer” rules—already used by banks to prevent money laundering and financial crimes—but would require verification of citizenship. Currently, these rules do not mandate such checks.
Industry representatives warned that a sweeping requirement could force institutions to seek passports or birth certificates from vast numbers of customers, creating major logistical challenges. They also cautioned it might complicate banking access for Americans without easy document access and undermine economic goals by introducing uncertainty into the financial system.
The administration’s interest in tying immigration enforcement to financial regulation has emerged alongside other policy shifts this year. In January, the Consumer Financial Protection Bureau and Department of Justice withdrew a 2023 joint statement on fair lending for noncitizen borrowers, signaling a broader reconsideration.
For now, the proposal remains delayed rather than dead, leaving banks prepared for potential narrower implementation focused on new customers.
