The immigrant community has reacted with concern to reports that President Donald Trump's administration is drafting an executive order to modify the rules of opening bank accounts in the United States, that require proof of citizenship.
Currently, there is no rule prohibiting non-citizens from opening accounts in the United States, nor do current rules require verification. migratory status as part of routine checks.
“At this time, it is important to remain calm and understand that no changes have been implemented. People who already have accounts should not assume that their access will be immediately affected,” he told Enlace Latino NC Vicky Garcia, President & CEO of Latino Community Credit Union.
“For those planning to open an account, my recommendation is to seek information directly from reliable financial institutions, especially those with experience serving diverse communities, such as credit unions,” he noted.
Can the government require proof of citizenship from banks?
Under laws such as Bank Secrecy ActThe federal government does have the authority to establish certain regulatory requirements for financial institutions, particularly regarding money laundering prevention and identity verification, explained Vicky García.
“However, there is currently no requirement to verify citizenship in order to open an account.”
“Such a measure would represent a significant change in the current regulatory framework and would likely require in-depth legal analysis, as well as the implementation of new rules by the relevant regulatory agencies,” he stated.
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How verification works in banks today
The president and CEO of Latino Community Credit Union, Vicky Garcia, pointed out that there are no direct precedents that require citizenship verification as a condition for opening bank accounts.
“The current system is based on the Customer Identification Program (CIP)"This system requires verifying a person's identity, but not their immigration status or citizenship." "This system has been effective for more than two decades in promoting both the security of the financial system and access to banking services," he added.
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Impact on immigrant communities
According to various media reports, representatives of the banking industry argued that requiring verification of citizenship status is not practical.
“The implications would be significant on several levels. For credit unions, it would mean a considerable operational and legal compliance burden, including changes to systems, processes, and training,” commented Vicky García.
“But more importantly, the impact on immigrant communities would be profound. Measures that limit access to the financial system could push many people out of safe and regulated institutions,” he noted.
García also argued that if this rule is implemented, it increases "security risks when handling cash, encourages the use of informal or predatory channels, and may contribute to the creation of a parallel economy."
“Access to financial services is fundamental for people to build economic stability, protect their resources and fully contribute to their communities,” he said.
Recommendations
In a hypothetical scenario where the executive order takes effect, García recommended that those planning to open an account should seek information directly from reliable financial institutions.
“Especially those with experience serving diverse communities, such as credit unions,” he emphasized.
“It is also important for people to seek out institutions that offer clear guidance and support, and to continue using the formal financial system as a tool for their security and economic well-being,” he concluded.
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Regarding the new executive order
The proposal, which, according to national media reports such as The Wall Street Journal It could take the form of an executive order or other action driven primarily by the Treasury Department, requiring financial institutions to request additional documentation — such as passports or other documents proving citizenship — from those who wish to open or maintain a bank account.
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