The Know Your American Customer Act would: Require FDIC or NCUA-insured banks and credit unions to verify that anyone opening a new account is a U.S. citizen, a permanent resident, or is here legally on a valid visa.
Require banks and credit unions to verify that anyone opening a new account is a U.S. citizen, permanent resident, or legally present on a valid visa.
Occurrences
The legislation mandates that U.S. financial institutions verify the legal status of new customers to ensure compliance with immigration laws. A statement from the Treasury to The National Pulse appears to be broadly supportive of the move.The bill would require banks and credit unions insured by the FDIC or NCUA to confirm that individuals opening new accounts are U.S. citizens, permanent residents, or legally present on a valid visa. Customers would need to present identification, such as a driver’s license or passport, along with proof of legal status.
The measure, dubbed the Know Your American Customer Act, would require banks insured by the FDIC and credit unions insured by the NCUA to verify that new customers are U.S. citizens, lawful permanent residents or otherwise legally present in the country on a valid visa.
To amend title 31, United States Code, to require certain financial institutions to verify the citizenship and legal status of individuals, and for other purposes.
I write to urge the Department of the Treasury to undertake a comprehensive review of current rules that allow illegal aliens to obtain financial services and access to the US banking system, including the regulations governing the acceptance of foreign identification documents for opening bank accounts in the United States. ... I respectfully request that the Department explore whether the USA PATRIOT Act or the Bank Secrecy Act could appropriately be utilized to prevent illegal aliens from opening accounts at U.S. financial institutions.
Evidence
Senator Tom Cotton introduced the Know Your American Customer Act, requiring U.S. financial institutions to verify the legal status of new customers to prevent illegal migrants from accessing the American banking system.
The Know Your American Customer Act, introduced as S. 4206, was read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
The Know Your American Customer Act would require FDIC- and NCUA-insured banks and credit unions to verify that new customers are U.S. citizens, lawful permanent residents, or legally present on a valid visa.
The U.S. Treasury Department expressed broad support for Senator Cotton's Know Your American Customer Act, which aims to restrict illegal migrants from accessing the American banking system.
Assessments
Senator Tom Cotton introduced the Know Your American Customer Act, which would require banks and credit unions to verify the legal status of new account holders. The bill was formally introduced and referred to committee, and it garnered some executive branch support. However, there is no evidence that the bill advanced beyond committee or became law; as such, the promise itself was not delivered. Significant legislative effort was made, justifying an effort badge, but the outcome was not achieved.