The U.S. government passed an executive order requiring citizenship vetting by American banks. The order is part of a larger effort protecting American financial institutions from fraud. It goes into effect on August 17, 2026.

Order Details

The executive order proposed the following policies:

• Banks must report the following activity of potential customers to immigration authorities:
  • Signs of tax evasion by employers or non-American employees.
  • Using foreign IDS, nominee accounts, shell companies, and other factors meant to conceal payroll distribution.
  • Using unregistered third-party processors, or other institutions that facilitate off-the-books payments bypassing the Bank Secrecy Act.
  • Repeated cash withdrawals that correlate with payroll cycles.
  • Financial activity implying forced or trafficked labor.
  • Using an Individual Taxpayer Identification Number (ITIN) for obtaining credit or opening accounts where the applicant lacks verified lawful immigration status.

According to the Associated Press, increased citizenship vetting by banks makes it harder for foreign citizens to open bank accounts.

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