Cotton Introduces Bill to Ban Illegal Migrants from American Banking System

FOR IMMEDIATE RELEASE Contact: Patrick McCann (202) 224-2353 March 25, 2026 Cotton Introduces Bill to Ban Illegal Migrants from American Banking System Washington, DC — Senator Tom Cotton (R-Arkansas) today introduced legislation to ban illegal migrants from the American banking system. The Know Your American Customer Act requires U.S. financial institutions to verify the legal status of new customers to ensure American banks are not helping illegal migrants break our nation’s laws. In 2025, Senator Cotton wrote a letter to Treasury Secretary Scott Bessent asking that he review current rules for illegal immigrant access to the U.S. banking system. “Access to the American banking system is a privilege that should only be reserved for those who respect our laws and sovereignty. My bill will prevent illegal aliens from using our financial institutions to help them stay in our country,” said Senator Cotton . Text of the bill can be found here . 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. Customers show a driver's license, passport, or other approved ID at account opening, the same way they already do today, with one added check for legal status. Grandfather all existing clients into the system and allow them to maintain their existing accounts or create new accounts at banks or credit unions, provided they already have a relationship with the institution in question. Make it a federal crime for anyone in the country illegally to open or maintain an account at a covered institution. That legal liability falls entirely on the individual, provided that covered institutions make a good faith effort to verify documentation and comply with the new requirements. ###