Senator Tom Cotton introduced legislation on Mar. 25 that would ban illegal migrants from accessing the American banking system. The proposed Know Your American Customer Act would require financial institutions in the United States to verify the legal status of new customers before allowing them to open accounts.
The bill aims to ensure that only individuals who are citizens, permanent residents, or those legally present on valid visas can access bank and credit union services. This proposal comes after Cotton wrote a letter in 2025 to Treasury Secretary Scott Bessent, asking for a review of current rules regarding access for illegal immigrants.
“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,” Senator Cotton said.
Under the legislation, banks and credit unions insured by the Federal Deposit Insurance Corporation or National Credit Union Administration would need customers opening new accounts to show approved identification such as a driver’s license or passport, with an added check for legal status. Existing clients would be grandfathered into the system and could maintain their accounts or open new ones at their current institution if they already have an established relationship. It would also become a federal crime for anyone illegally present in the country to open or maintain an account at these institutions if banks make good faith efforts at verification.
Cotton has assisted Arkansans with casework involving federal agencies, visas, passports, and military honors according to his official website. He served as an Infantry Officer in the United States Army according to his official website and chaired the Senate Select Committee on Intelligence according to his official website. His background includes attending Dardanelle High School and earning degrees from Harvard University and Harvard Law School according to his official website, as well as growing up on a family cattle farm in Yell County according to his official website.
Cotton currently serves on several key committees including Intelligence, Armed Services, and Energy and Natural Resources according to his official website. He ran on national security and economic policies agendas. As chairman of the Senate Republican Conference, he holds one of the highest-ranking positions among Senate Republicans according to his official website.
