Bill Summary
The "Alien Banking Act" is a proposed legislation aimed at amending section 5318 of title 31 of the United States Code. Its primary objective is to require financial institutions to verify the lawful immigration status of individuals seeking to open deposit accounts. Under the new provisions, applicants must attest to their legal presence in the U.S. through a self-attestation form, which includes options to declare their status as a U.S. citizen, lawful permanent resident, or otherwise lawfully present.
Key features of the bill include:
1. **Verification Requirement**: Financial institutions are mandated to require individuals to confirm their lawful immigration status when applying for an account, with the provision that accounts cannot be opened for those who do not provide the necessary attestation.
2. **Penalties for False Attestation**: Individuals who knowingly make false statements regarding their immigration status may face significant civil penalties ($10,000 to $50,000), criminal penalties (fines up to $250,000 and up to five years of imprisonment), and possible asset forfeiture linked to the account in question.
3. **Reporting Obligations**: Financial institutions that suspect false attestations must report these suspicions to both the Secretary of Homeland Security and the Attorney General.
4. **Regulatory Framework**: The Secretary of the Treasury, in coordination with other relevant authorities, is tasked with developing regulations for implementing this act within 180 days of its enactment.
5. **Effective Date**: The provisions of the act are set to take effect one year after it is enacted.
Overall, the "Alien Banking Act" seeks to tighten the restrictions on banking services for individuals based on their immigration status, aiming to deter fraudulent claims regarding lawful presence in the U.S.
Possible Impacts
The "Alien Banking Act" could affect people in several significant ways, including:
1. **Access to Banking Services**: Individuals who are unlawfully present in the United States will be unable to open or maintain bank accounts, which could lead to increased financial exclusion. This may limit their ability to manage finances securely, access loans, or participate in the economy, making it difficult for them to pay bills, receive payments, or save money.
2. **Legal and Financial Risks for Applicants**: The requirement for individuals to provide a self-attestation of their lawful immigration status introduces legal risks. Those who unknowingly make false attestations, whether due to misunderstanding the requirements or misinformation, could face severe penalties, including substantial fines and possible imprisonment. This could create a climate of fear and anxiety among applicants regarding their immigration status.
3. **Increased Reporting and Surveillance**: Financial institutions will be required to report any suspected false attestations to the Secretary of Homeland Security and the Attorney General. This could lead to increased scrutiny of individuals' banking activities and a heightened sense of surveillance in immigrant communities. The fear of being reported could deter individuals from seeking banking services, further isolating them from essential financial systems.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7842 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7842
To amend section 5318 of title 31, United States Code, to require
financial institutions to verify the lawful immigration status of
applicants for deposit accounts through a self-attestation form, to
impose penalties on individuals for false attestations, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2026
Mr. Ogles (for himself, Mr. Crane, and Mr. Higgins of Louisiana)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To amend section 5318 of title 31, United States Code, to require
financial institutions to verify the lawful immigration status of
applicants for deposit accounts through a self-attestation form, to
impose penalties on individuals for false attestations, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Alien Banking Act''.
SEC. 2. REQUIREMENT FOR IMMIGRATION STATUS VERIFICATION IN CUSTOMER
IDENTIFICATION PROGRAMS.
(a) In General.--Section 5318(l) of title 31, United States Code,
is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(D) requiring any individual who is present in
the United States and seeking to open an account to
attest, under penalty of perjury, to the individual's
lawful presence in the United States, including by
checking a box or similar affirmation on the deposit
account application form indicating whether the
individual is a United States citizen, a lawful
permanent resident, or otherwise lawfully present in
the United States, as defined by the Secretary of
Homeland Security in consultation with the Secretary of
the Treasury.''; and
(2) by adding at the end the following:
``(7) Prohibition on opening accounts for unlawfully
present individuals.--A financial institution may not open or
maintain an account for any individual who fails to provide the
attestation required under paragraph (2)(D).
``(8) Penalties for individuals.--
``(A) Civil penalty.--Any individual who knowingly
makes a false attestation described in paragraph (2)(D)
is liable for a civil penalty of not less than $10,000
and not more than $50,000.
``(B) Criminal penalty.--Any individual who
knowingly makes a false attestation described in
paragraph (2)(D) shall be fined under title 18, United
States Code, imprisoned not more than 5 years, or both.
Notwithstanding title 18, United States Code, the fine
under this subparagraph shall not exceed $250,000.
``(C) Forfeiture of assets.--
``(i) Civil forfeiture.--In the case of an
individual knowingly making a false attestation
described in paragraph (2)(D) in connection
with an account, any property contained in the
account, regardless of when such property was
placed in the account, and any property
otherwise traceable to the account, may be
seized and forfeited to the United States in
accordance with the procedures governing civil
forfeitures in money laundering cases pursuant
to section 981(a)(1)(A) of title 18, United
States Code.
``(ii) Criminal forfeiture.--
``(I) In general.--A court, in
imposing sentence for an individual
knowingly making a false attestation
described in paragraph (2)(D) in
connection with an account, shall order
the defendant to forfeit all property
contained in the account, regardless of
when such property was placed in the
account, and any property otherwise
traceable to the account.
``(II) Procedure.--Forfeitures
under this clause shall be governed by
the procedures established in section
413 of the Controlled Substances Act.
``(9) Reporting requirement.--A financial institution that
has reason to believe an individual has made a false
attestation described in paragraph (2)(D) shall report such
belief to the Secretary of Homeland Security and the Attorney
General.''.
SEC. 3. REGULATIONS.
Not later than 180 days after the date of enactment of this Act,
the Secretary of the Treasury, in consultation with the Secretary of
Homeland Security and the Attorney General, shall issue regulations to
implement the amendments made by section 2 of this Act, including--
(1) model language for the attestation described in
5318(l)(2)(D) of title 31, United States Code; and
(2) guidelines for reporting suspected false attestations
under section 5318(l)(9) of such title.
SEC. 4. EFFECTIVE DATE.
The provisions added by the amendments made by this Act shall take
effect on the date that is 1 year after the date of enactment of this
Act.
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