The White House is deliberating on a policy that could require banks across the United States to collect and verify the citizenship status of their customers, officials and industry sources say.

This prospective measure, which could take the form of an executive order or regulatory action led by the Treasury Department, marks a significant potential shift in the role of financial institutions in national immigration policy.

Under current federal “know your customer” rules, banks must verify basic identity information — such as names, dates of birth and addresses — to prevent money laundering and other financial crimes, but there is no mandate to confirm citizenship status.

The new proposal would go beyond those requirements by asking new and existing accountholders to provide documentation such as passports or other proof of U.S. citizenship.

People familiar with the discussions say the intent behind the proposal is to restrict access to the banking system for undocumented immigrants, aligning with broader immigration enforcement measures pursued by the Trump administration.

It remains unclear whether the requirement would simply expand data collection or whether banks would be tasked with closing accounts for customers unable to prove citizenship.

Approximately half of the U.S. population does not hold a passport, raising concerns about how the policy could affect citizens and lawful residents alike.

Banking industry executives have expressed alarm at the potential new obligations.

They argue that verifying citizenship for all customers would impose heavy logistical and legal burdens and could fundamentally alter the relationship between financial institutions and their clients.

Industry representatives have questioned the legal basis for such a requirement and warned that implementation could prove complex and costly.

Administration officials have not confirmed any finalized plans.

A White House spokesperson reiterated that reporting on unannounced policy proposals constitutes speculation, while noting that no decision has been made public.

Various options remain under review within the Treasury Department, including potential involvement by the Financial Crimes Enforcement Network, which enforces anti-money laundering rules.

Senator Tom Cotton has publicly supported measures to limit undocumented immigrants’ access to banking services and has pledged legislation aimed at achieving that objective.

Meanwhile, experts caution that any attempt to mandate citizenship verification through executive action could face legal challenges, particularly under laws that protect financial privacy and govern access to banking services.

The discussion over citizenship verification in banking emerges amid a broader debate over how immigration policy intersects with economic and administrative systems, and reflects the administration’s continued focus on tightening immigration enforcement across multiple fronts.