Know Your American Customer Act

Key Points

• Banks and credit unions would have to verify the citizenship or legal immigration status of anyone opening a new account. Customers would need to present specific documents like a REAL ID compliant driver's license, U.S. passport, birth certificate, or naturalization certificate.
• People in the U.S. on temporary visas would need to certify their authorized stay period. If their status expires, they get 30 days of full access, then 60 days where deposits are allowed but withdrawals are blocked. After that, the bank must close the account unless the person provides updated proof of legal presence.
• The bill creates criminal penalties for people who are not lawfully present and who open or maintain a bank account. They could face fines up to $1 million or up to one year in prison, though exceptions exist for pending asylum applicants and people whose status expired within the last 90 days.
• Banks that fail to comply face civil penalties, but safe harbors protect institutions that make a good faith effort to follow the rules or that rely on the listed documents when making account decisions.
• The law would override all state laws on this topic and would not apply to accounts held by nonresident aliens outside the U.S., foreign corporations, foreign governments, or international banking operations.