Treasury Secretary Scott Bessent is taking steps to prepare financial institutions to collect citizenship data from their customers, according to reports.

The initiative represents a significant development in banking regulations and data collection requirements for financial institutions operating in the United States.

Details about the specific implementation timeline, scope of the citizenship data collection requirements, and which types of financial institutions would be affected have not been fully disclosed.

The move comes as part of broader discussions about banking regulations and compliance requirements in the financial sector. Banks already collect extensive customer information for various regulatory and compliance purposes under existing federal laws.

It remains unclear what specific use cases or regulatory purposes the citizenship data would serve, or how the information would be stored and protected under current privacy and data security standards.