Senator Tom Cotton (R-AR) has introduced legislation aimed at barring illegal migrants from accessing the American banking system, a measure targeting financial institutions and seeking to enforce compliance with U.S. law.
The proposed “Know Your American Customer Act” would mandate that banks and credit unions insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) verify customers’ legal status before opening new accounts. This requirement would necessitate proof of U.S. citizenship, permanent residency, or valid immigration status using documentation such as a driver’s license or passport.
In a letter addressed to Treasury Secretary Scott Bessent in 2025, Senator Cotton requested the review of current regulations regarding illegal immigrant access to banking services. The legislation includes a grandfather clause permitting existing customers with established relationships with their financial institutions to maintain or open new accounts without immediate verification.
Under the bill, individuals attempting to open or maintain bank accounts illegally would face criminal penalties, and financial institutions that fail to verify customer identities in good faith could be held liable. The measure’s key quote from Senator Cotton states: “Access to the American banking system is a privilege that should only be reserved for those who respect our laws and sovereignty.”
This proposed legislation aims to prevent illegal migrants from using financial systems as a means of remaining in the United States.
