The administration of U.S. President Donald Trump is reportedly reviewing a measure that would require banks to collect information on customers' citizenship status as part of efforts to toughen the crackdown on illegal immigration.
On the 24th (local time), the Wall Street Journal (WSJ) reported that the administration is discussing an executive order or other administrative action that would include such measures. Sources familiar with the matter explained that the initiative is intended to identify undocumented immigrants in the United States more effectively.
If this measure is implemented, banks may have to require both new and existing customers to submit additional documents, such as passports, that can verify their citizenship status. Compared with the current system, this is being viewed as an unprecedented level of information collection.
Some sources said that the discussions themselves are already placing a considerable burden on the financial sector. They noted that if customer due diligence procedures are significantly strengthened, concerns are growing both about higher administrative costs and about potential customer attrition.
U.S. banks currently operate "Know Your Customer (KYC)" procedures to prevent money laundering and financial crimes. However, the current regulations do not explicitly require the collection of citizenship information, nor do they contain provisions restricting non-citizens from opening accounts.
A White House official stated that the measure is being discussed within the Treasury Department but has not yet reached the stage of final approval.
The WSJ added, however, that given how the Trump administration makes policy decisions, it is difficult to regard any measure as finalized until the president announces it personally.
White House deputy spokesperson Kushi Desai said, "Reports about the development of potential policies that the White House has not officially announced are nothing more than unfounded speculation."
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