# Summary of S. 4206: Know Your American Customer Act
This bill requires banks and credit unions to verify that customers are U.S. citizens or legally present in the country before opening new accounts. Starting 90 days after enactment, individuals opening accounts must provide documents such as a U.S. passport, driver's license, birth certificate, permanent resident card, or valid visa demonstrating lawful presence. For people with temporary legal status, such as visa holders, banks must obtain certification of their authorized stay and can restrict account access—allowing only deposits but blocking withdrawals—for 60 days after their legal status expires if they fail to provide updated documentation. Banks that violate these requirements face civil penalties, though they are protected from penalties if they make good-faith compliance efforts and accept documents listed in the law. The bill also makes it a federal crime, punishable by up to one year in prison and a $1 million fine, for individuals without lawful presence to knowingly open or maintain active bank accounts. The Treasury Department must issue guidance within 30 days and final regulations within 90 days, and the law preempts any conflicting state banking laws.
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