The Trump administration’s exploration of a new requirement that banks collect proof of citizenship from their customers began at the end of last year, a person familiar with the talks told Semafor.
The person added that officials initially considered tapping banking regulators to draft a memo for Treasury Secretary Scott Bessent before eventually putting Treasury’s Financial Crimes Enforcement Network in charge of gaming out the options.
That memo, laying out potential paths forward under existing law — as well as possible pros and cons for each proposal currently under consideration — has been in the works since earlier this month, the person said.
Some options to require the citizenship documentation would be binding, while others would be voluntary.
But the closer the administration gets to formally embracing the proposal, which could take the form of an executive order or regulatory guidance, the harder banks will fight back against an idea they warn would be nightmarish to implement.