What does Preamble of Know Your American Customer Act do?

This bill aims to amend title 31, United States Code The amendment requires financial institutions to verify citizenship and legal status of individuals

What does SHORT TITLE. of Know Your American Customer Act do?

This bill is formally titled the Know Your American Customer Act.

What does VERIFICATION OF CITIZENSHIP AND LEGAL STATUS. of Know Your American Customer Act do?

This section amends Section 5318 of title 31, United States Code, to add verification of citizenship and legal status requirements. A covered institution may not open or maintain an account for a covered individual who is not lawfully present in the United States. Covered individuals must provide documentation to verify lawful presence, such as a driver's license, passport, or birth certificate. Accounts of individuals with temporary authorized stay will be restricted or closed if they do not provide updated documentation of lawful presence. The Secretary of the Treasury will enforce the provisions of this subsection, with coordination with the National Credit Union Administration for insured credit unions.

What does LIMITATION ON CRIMINAL PENALTIES. of Know Your American Customer Act do?

This section amends title 31, United States Code, section 5322 to establish limitations on criminal penalties. It defines 'active account' as an account with which an individual may conduct transactions, excluding accounts restricted or frozen under section 5318(r). It defines 'covered institution', 'lawfully present', and 'period of authorized stay' by reference to section 5318(r). Individuals not lawfully present in the U.S. or with a removal order, who open or maintain an active account at a covered institution, may face fines up to $1,000,000 or imprisonment for up to one year. This penalty does not apply to individuals whose authorized stay expired within 90 days or who have filed an asylum application that hasn't been finalized. The same penalties apply to individuals who open or maintain accounts through legal entities or direct others to do so. Criminal penalties under this section do not apply solely for violations of section 5318(r). This section does not limit criminal liability for other federal law violations.

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Know Your American Customer Act

Last updated: 3/25/2026 · Introduced: 3/25/2026

Author: Tom Cotton (R-AR)

TL;DR (AI)

Financial institutions must verify the citizenship and legal status of individuals before opening or maintaining accounts.
Individuals without lawful presence in the United States may face fines up to $1,000,000 or imprisonment of up to one year for opening or maintaining an active account.
The bill defines key terms like 'active account' and 'lawfully present' and clarifies that criminal penalties under this act do not supersede other federal law violations.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

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