Know Your American Customer Act
Sen. Cotton Introduces Bill to Require Citizenship Verification for All Bank Accounts
This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Banking, Housing, and Urban Affairs for review. It is considered active, but there are no upcoming votes or hearings scheduled at this time. The bill is waiting for the committee to decide if it should move forward for further consideration.
Legislative Progress
This bill faces a difficult path because it would significantly change how every bank in the country operates. It is likely to face strong opposition from groups concerned about privacy and banking access.
Key Points
Impact Analysis
Personal Impact
Undocumented individuals would be completely barred from opening or maintaining bank accounts at any U.S. bank or credit union. They would also face criminal penalties of up to $1 million in fines or one year in prison for attempting to open or keep an active account. This would force millions of people into a cash-only existence, making it nearly impossible to receive wages through direct deposit, pay bills electronically, or build any financial record.
“a covered institution may not open or maintain an account for any covered individual who is not lawfully present in the United States.”
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
3 articlesBill Introduced to Bar Immigrants From Accessing Banking System, Including at Credit Unions
The proposed 'Know Your American Customer Act' would mandate that FDIC and NCUA-insured institutions verify the citizenship or legal residency of anyone opening a new account. The bill includes provisions to grandfather in existing customers while imposing strict verification for new ones.
BANK SECRECY ACT—Cotton introduces bill requiring banks to verify customers' immigration status
Senator Tom Cotton's new legislation would require financial institutions to check potential customers' legal status using documents like passports or REAL ID-compliant licenses. The bill also establishes penalties for undocumented individuals who attempt to maintain bank accounts.
Propuesta en el Congreso buscaría prohibir que migrantes indocumentados abran y mantengan cuentas bancarias
A new bill titled the 'Know Your American Customer Act' would prohibit undocumented immigrants from opening or maintaining bank accounts in the U.S. The proposal, introduced by Sen. Tom Cotton, would require banks to verify legal status and could criminalize banking for those without it.
Source Information
Document Type
Congressional Bill
Official Title
Know Your American Customer Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.