Bill · S. 4206· Senate(119-S-4206)
Know Your American Customer Act
- Introduced
- 3/25/2026
- Last activity
- 3/25/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "Know Your American Customer Act" requires certain financial institutions, such as insured depository institutions and credit unions, to verify the citizenship or legal status of individuals opening or maintaining accounts. Under this bill, institutions may not maintain accounts for "covered individuals" who are not lawfully present in the United States. Individuals with a temporary period of authorized stay must provide specific documentation regarding their expiration date and basis for stay. If documentation is not updated, institutions are required to restrict transactions and eventually close the account. The bill also establishes civil penalties for financial institutions that fail to comply with these verification requirements. Additionally, it introduces criminal penalties for certain individuals who open or maintain active accounts while not lawfully present.
Yes
Does this tighten control of the border?+2
The bill increases domestic scrutiny of undocumented individuals through the financial system.
Does this make what the government does easier for the public to see?+1
The bill requires financial institutions to report and verify the legal status of account holders to the government.
The opposite· 3 of 4
Would immigrants be better off under this?-8
The bill subjects undocumented immigrants to account freezes, mandatory closures, and potential criminal prosecution.
Would Hispanic Americans be better off under this?-6
The bill imposes restrictive financial measures and criminal penalties that disproportionately impact undocumented immigrants.
Would households on low incomes be better off under this?-5
The bill creates significant financial risks, including account freezes and closures, for undocumented individuals who may rely on these accounts.
Who it would affect, and how
Potential Positive Impacts for People
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Protection for specific groups through exceptions: The bill provides exceptions to criminal penalties for individuals whose period of authorized stay expired within the preceding 90 days or those who have filed an asylum application that has not been finally adjudicated (Section 3).
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Safe harbor for financial institutions: Financial institutions are protected from civil penalties if they make a good- faith effort to comply or rely on specific accepted documents like a driver's license or a U.S. passport (Section 2, paragraph 4).
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Account access during transitions: Individuals with a temporary authorized stay retain full access to their accounts for a 30-day period after their authorized stay expires (Section 2, paragraph 2, subclause (ii)(I)).
Potential Negative Impacts for People
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Restrictions on account usage: Individuals whose authorized stay has expired will face a 60-day period where they can receive deposits but are prohibited from making any withdrawals, outgoing transfers, or using debit/credit cards (Section 2, paragraph 2, subclause (ii)(II)).
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Risk of account closure: If an individual fails to provide updated documentation of their lawful presence before the end of a 60-day restricted period, their account must be closed (Section 2, paragraph 2, subclause (iii)).
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Criminal penalties for individuals: People who are not lawfully present in the United States or whose removal has been ordered, and who open or maintain an active account, may face fines of up to $1,000,000 and imprisonment for up to one year (Section 3, paragraph 2).
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Criminal penalties for using legal entities: Individuals who are not lawfully present may face the same fines and imprisonment if they attempt to open or maintain an account through a legal entity (Section 3, paragraph 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Immigrants-8Good For Hispanic Americans-6Good For Low Income Households-5
- Economy And Finance
- Improves Consumer Protection-3
- Social Issues And Justice
- Improves Border Security+2
- Governance And Ideology
- Improves Government Transparency+1
- 3/25/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.