H.R. 8836

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8836 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8836

To amend title 31, United States Code, to require certain financial 
institutions to verify the citizenship and legal status of individuals, 
and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 14, 2026

Mr. Self introduced the following bill; which was referred to the 
Committee on Financial Services

_______________________________________________________________________

A BILL

To amend title 31, United States Code, to require certain financial 
institutions to verify the citizenship and legal status of individuals, 
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 ``Know Your American Customer Act''.

SEC. 2. VERIFICATION OF CITIZENSHIP AND LEGAL STATUS.

Section 5318 of title 31, United States Code, is amended by adding 
at the end the following:
``(r) Verification of Citizenship and Legal Status.--
``(1) Definitions.--In this subsection:
``(A) Covered individual.--The term `covered 
individual' means any natural person who--
``(i) seeks to open an account at a covered 
institution;
``(ii)(I) who holds an account at a covered 
institution that was opened on or after the 
date that is 90 days after the date of 
enactment of this subsection; and
``(II) whose eligibility for such account 
was established through documentation of 
authorization to temporarily reside in the 
United States in compliance with paragraph 
(2)(C); or
``(iii) is identified as the individual 
exercising substantial control over a legal 
entity, as described in section 5336, that 
seeks to open an account at a covered 
institution.
``(B) Covered institution.--The term `covered 
institution' means--
``(i) an insured depository institution; 
and
``(ii) an insured credit union.
``(C) Distributions or transfers.--The term 
`distributions or transfers' means any payment, refund, 
deposit, or other funds that would otherwise be 
directed to an account that has been frozen or closed 
under this subsection.
``(D) Insured credit union.--The term `insured 
credit union' has the meaning given the term in section 
101 of the Federal Credit Union Act (12 U.S.C. 1752).
``(E) Insured depository institution.--The term 
`insured depository institution' has the meaning given 
the term in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813).
``(F) Lawful presence; lawfully present in the 
united states.--The terms `lawful presence' and 
`lawfully present in the United States', with respect 
to an individual, mean that the individual is--
``(i) a citizen or national of the United 
States; or
``(ii) an alien--
``(I) who has been inspected and 
admitted or paroled into the United 
States under the Immigration and 
Nationality Act (8 U.S.C. 1101 et 
seq.); and
``(II) whose period of authorized 
stay has not expired.
``(G) Period of authorized stay.--The term `period 
of authorized stay' means the period during which an 
alien is authorized by the Secretary of Homeland 
Security to be present in the United States, as 
evidenced by a document issued by the Department of 
Homeland Security, including an Arrival/Departure 
Record (Form I-94) (or an equivalent document).
``(2) Eligibility to open and maintain an account.--
``(A) In general.--Except as provided in 
subparagraph (C), a covered institution may not open or 
maintain an account for any covered individual who is 
not lawfully present in the United States.
``(B) Verification requirement.--
``(i) New accounts.--
``(I) In general.--Except as 
provided in clause (ii), beginning on 
and after the date that is 90 days 
after the date of enactment of this 
subjection, a covered individual shall 
present 1 of the following, which may 
be an original or certified copy, to 
open an account at a covered 
institution:
``(aa) A driver's license 
or identification card issued 
by a State that is compliant 
with section 202 of the REAL ID 
Act of 2005 (division B of 
Public Law 109-13; 49 U.S.C. 
30301 note).
``(bb) A United States 
passport or passport card.
``(cc) A birth certificate 
issued by the vital records 
office of a State, territory, 
or the District of Columbia.
``(dd) A Certificate of 
Naturalization (Form N-550, 
Form N-570, or Form N-578).
``(ee) A Certificate of 
Citizenship (Form N-560 or Form 
N-561).
``(ff) A Consular Report of 
Birth Abroad (Form FS-240) or 
Certification of Report of 
Birth (Form DS-1350).
``(gg) A Permanent Resident 
Card (Form I-551).
``(hh) A valid, unexpired 
foreign passport with a valid 
Arrival/Departure Record (Form 
I-94) or nonimmigrant visa 
demonstrating lawful admission 
and lawful presence.
``(ii) A Social Security 
Administration proof-of-
earnings card or statement, 
presented with a valid driver's 
license or identification card 
issued by a State regardless of 
whether such license or card 
was issued in accordance with 
section 202 of the REAL ID Act 
of 2005 (division B of Public 
Law 109-13; 49 U.S.C. 30301 
note).
``(jj) A valid 
identification card issued by 
the Department of Defense to a 
member of the uniformed 
services or to a dependent of 
such a member.
``(kk) Any other document 
determined by the Secretary of 
Homeland Security, by 
regulation, to be sufficient 
evidence of United States 
citizenship or lawful presence.
``(II) Authorized users.--Any 
individual who does not maintain an 
account at the covered institution and 
who is added as a joint holder or 
authorized signer on an account at such 
institution after the date described in 
subclause (I) shall be subject to the 
verification requirements of that 
subclause.
``(ii) Exception.--Clause (i) shall not 
apply to an individual who maintains an 
account, before the date described in that 
clause, at the same covered institution the 
individual seeks to open an account.
``(C) Individuals with limited period of authorized 
stay.--
``(i) Documentation of authorized stay.--
Any covered individual whose period of 
authorized stay in the United States is 
temporary, as of the date on which the 
individual opens an account at a covered 
institution, shall provide the covered 
institution with a certification, on a form 
prescribed by the Secretary of the Treasury, 
that--
``(I) identifies the expiration 
date of such authorized stay;
``(II) describes the basis for such 
stay; and
``(III) is modeled after the 
certification requirements applicable 
to nonresident aliens under chapter 3 
of the Internal Revenue Code of 1986.
``(ii) Grace period and account closure.--
``(I) In general.--Except as 
provided in subclause (III), beginning 
on the last day of the period of 
authorized stay of a covered individual 
described in clause (i)(I), the covered 
individual shall retain full access to 
the account for a period of 30 days, 
after which, if the covered individual 
has not provided updated documentation 
of lawful presence, the covered 
institution shall restrict transactions 
involving the account of the covered 
individual for a period of 60 days in 
accordance with subclause (II).
``(II) Transaction limitations.--
During the 60-day period described in 
subclause (I), the covered institution 
shall--
``(aa) permit incoming 
deposits, direct deposits, and 
other credits to the account; 
and
``(bb) prohibit all 
withdrawals, outgoing 
transfers, debit or credit card 
transactions, and wire 
transfers.
``(III) Full access.--If the 
covered individual provides updated 
documentation of lawful presence during 
the 30-day or 60-day period described 
in subclause (I) in accordance with 
clause (i), the covered institution 
shall restore full access to the 
account of the covered individual.
``(iii) Account closure.--If the covered 
individual does not provide updated 
documentation of lawful presence before the end 
of the 60-day restricted period described in 
clause (ii)(I), the covered institution shall 
close the account in accordance with 
regulations promulgated under paragraph (4).
``(iv) Accounts opened by legal entities.--
The requirements of this paragraph shall not 
apply to accounts opened by legal entities.
``(3) Frozen or closed account procedures.--
``(A) In general.--Except as provided in paragraph 
(2)(C), a covered institution shall freeze or close the 
account of any covered individual who is not lawfully 
present in the United States or who is otherwise 
determined to be ineligible under this subsection.
``(B) Applicability.--Any applicable provision of 
law (including regulations) regarding the closure of an 
account shall apply to an account frozen under this 
paragraph.
``(4) Penalty.--
``(A) In general.--Except as provided in 
subparagraph (B), any covered institution that violates 
this subsection shall be subject to a civil penalty.
``(B) Safe harbors.--No covered institution may be 
subject a civil penalty for a violation of this 
subsection if the covered institution--
``(i) makes a good-faith effort to comply 
with this subsection, and the regulations 
promulgated under this subsection;
``(ii) accepts any document listed in 
subparagraph (B)(i)(I) and relies on such 
document, including in any good-faith closure 
or freezing of an account under paragraph (3); 
or
``(iii) accepts a driver's license or 
identification card issued by a State that 
requires proof of lawful presence or United 
States citizenship as a condition for issuance.
``(5) Enforcement.--
``(A) In general.--Except as provided in 
subparagraph (B), the Secretary of the Treasury, acting 
through the Director of the Financial Crimes 
Enforcement Network, shall enforce the provisions of 
this subsection.
``(B) Insured credit unions.--With respect to 
insured credit unions, the Secretary of the Treasury 
shall coordinate enforcement with the National Credit 
Union Administration.
``(6) Rulemaking.--
``(A) Interim guidance.--
``(i) In general.--Not later than 30 days 
after the date of enactment of this subsection, 
the Secretary of the Treasury shall issue 
interim guidance carrying out this subsection.
``(ii) Force and effect.--The interim 
guidance issued under this subparagraph shall 
have the force and effect of a rule promulgated 
under section 553 of title 5 until superseded 
by final regulations under subparagraph (B).
``(iii) Inapplicability.--Chapter 35 of 
title 44 shall not apply to any collection of 
information required under the interim guidance 
issued under this subparagraph.
``(B) Final regulations.--Not later than 90 days 
after the date of enactment of this subsection, the 
Secretary of the Treasury shall promulgate final 
regulations carrying out this subsection, including--
``(i) the procedures and timing for 
freezing and closing accounts;
``(ii) the notice requirements applicable 
to account holders;
``(iii) the handling of distributions or 
transfers directed to frozen or closed 
accounts, including procedures for redirecting 
incoming payments; and
``(iv) the disbursement or transfer of 
remaining balances to another financial 
institution or foreign financial institution 
designated by the individual.
``(7) Applicability.--Nothing in this subsection shall 
apply to, restrict, or impose any additional verification 
requirements on--
``(A) accounts held by nonresident aliens (as 
defined in section 7701(b)(1)(B) of the Internal 
Revenue Code of 1986) who are not physically present in 
the United States;
``(B) accounts maintained by foreign persons, 
foreign corporations, foreign governments, or other 
foreign entities not resident or physically present in 
the United States;
``(C) deposits or accounts at branches or agencies 
of foreign banks in the United States, to the extent 
attributable to non-resident or foreign sources;
``(D) any other foreign capital inflows, 
correspondent accounts, or international banking 
liabilities to foreign residents, as reported under the 
Treasury International Capital system or similar 
frameworks.
``(8) Effect on state law.--The provisions of this section 
shall supersede any provisions of the law of any State relating 
to the verification of the lawful residency of covered 
individuals by financial institutions chartered, licensed, or 
operating in the United States.''.

SEC. 3. LIMITATION ON CRIMINAL PENALTIES.

Section 5322 of title 31, United States Code, is amended by adding 
at the end the following:
``(f)(1) In this subsection--
``(A) the term `active account'--
``(i) means an account with which an individual may 
conduct transactions; and
``(ii) does not include an account that has been 
restricted or frozen under section 5318(r); and
``(B) the terms `covered institution', `lawfully present', 
and `period of authorized stay' have the meanings given the 
terms in section 5318(r).
``(2)(A) Except as provided in subparagraph (B), Any individual who 
is not lawfully present in the United States, or whose removal has been 
ordered under chapter 4 of title II of the Immigration and Nationality 
Act (8 U.S.C. 1221 et seq.), and who opens or maintains an active 
account at a covered institution, shall be fined not more than 
$1,000,000, imprisoned for not more than 1 year, or both. This 
paragraph does not apply to any individual whose period of authorized 
stay expired within the preceding 90 days, or who has filed an 
application for asylum under section 208 of the Immigration and 
Nationality Act (8 U.S.C. 1158) that has not been finally adjudicated.
``(B) Subparagraph (A) shall not apply to any individual--
``(i) whose period of authorized stay expired within the 
preceding 90 days; or
``(ii) who has filed an application for asylum under 
section 208 of the Immigration and Nationality Act (8 U.S.C. 
1158) that has not been finally adjudicated.
``(3) Any individual who is not lawfully present in the United 
States, or whose removal has been ordered under chapter 4 of title II 
of the Immigration and Nationality Act (8 U.S.C. 1221 et seq.), and who 
opens or maintains an account at a covered institution through a legal 
entity, or who directs another person to do so on the behalf of the 
individual, shall be fined not more than $1,000,000, imprisoned for not 
more than 1 year, or both.
``(4) Notwithstanding subsections (a) and (b), no person shall be 
subject to criminal penalties under this section solely for a violation 
of section 5318(r).
``(5) Nothing in this subsection shall be construed to limit 
criminal liability for any criminal violation of Federal law arising 
independently of a violation of section 5318(r).''.
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