U.S. Treasury Moves Forward with Bank Requirement to Verify Customer Citizenship
The U.S. Treasury is developing a plan requiring banks to collect and verify customers' citizenship information. Treasury Secretary Scott Bessent stated the order is in process. Estimates indicate potential administrative costs of $2.6 billion to $5.6 billion and additional paperwork hours.
insurancejournal.comU.S. Treasury is advancing a plan that would require banks to collect and verify customers' citizenship information, the Washington Examiner reported. 220, which mandates collecting identifying information and using risk-based procedures to form a reasonable belief of a customer's true identity, according to the Washington Examiner.
6 billion in administrative costs, the Washington Examiner reported. Estimates suggest roughly 47% of Americans don’t have a valid passport, per the Washington Examiner. , is president of Ginn Economic Consulting.
He was a former chief economist at the White House Office of Management and Budget. Ginn resides in Round Rock, Texas.
Key Facts
Story Timeline
5 events- 2026-05-01
U.S. Treasury advances plan for banks to verify customer citizenship, with order 'in process' per Treasury Secretary Scott Bessent.
1 sourceWashington Examiner - Recent (undated)
Existing Customer Identification Program rule in 31 CFR 1020.220 requires banks to collect identifying information.
1 sourceWashington Examiner - Recent (undated)
Estimate released on potential paperwork hours and costs for citizenship verification.
1 sourceWashington Examiner - Recent (undated)
Estimate suggests 47% of Americans lack a valid passport.
1 sourceWashington Examiner - Prior (undated)
Vance Ginn served as chief economist at the White House Office of Management and Budget.
1 sourceWashington Examiner
Potential Impact
- 01
Increased administrative costs for banks, potentially passed to customers via higher fees.
- 02
Additional paperwork burden on banks and customers, especially those without passports.
- 03
Potential delays in account openings and banking services due to verification requirements.
- 04
Broader effects on community banks and credit unions from compliance costs.
- 05
Possible privacy risks from collecting and storing citizenship data.
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