Reported by Dylan Tokar

(Excerpt shared below. To read full report, go to: https://www.wsj.com/finance/regulation/trump-order-would-push-banks-to-check-clients-citizenship-status-f8645caf)

A new executive order from President Trump would push banks to collect more information about their customers’ immigration status, part of an administration effort to crack down on undocumented immigrants’ access to the U.S. banking system.

Trump on Tuesday ordered regulators to rethink so-called “know your customer” rules meant to guard against money laundering and terrorist financing. The executive order would make a person’s immigration status an explicit part of a bank’s assessment of whether a customer poses a money-laundering risk.

The executive order doesn’t go as far as an earlier proposal first reported by The Wall Street Journal in February, which would have required banks to collect a new category of documents—such as passports—from both new and existing customers.

The details

The White House on Tuesday pointed to Chinese money-laundering networks and Mexican cartels as the basis for the rewrite of know-your-customer rules. It ordered regulators to propose changes to those rules within 90 days.