Executive Orders on Banking Regulations and Fintech Collaboration: A Closer Look
On May 19, U.S. President Donald Trump is set to sign two executive orders, one of which will backtrack on a previous proposal that would have required banks to collect citizenship information from customers. Instead, the final version of the executive order will task Treasury Secretary Scott Bessent with advising financial institutions on how undocumented immigrants can open accounts or receive loans.
The White House had initially planned to mandate banks to gather data on customers' citizenship or immigration status, a move that industry executives had cautioned would be costly and disruptive. The revised order will also prompt Bessent and other regulators to suggest changes to Bank Secrecy Act regulations to enhance customer due diligence and consumer identification requirements.
The second executive order aims to promote closer collaboration between financial institutions, fintech companies, and federal regulators. It will instruct the Federal Reserve to review its criteria for determining which non-bank financial entities and uninsured depository institutions can access its payment services and accounts.
The Semafor report detailing these executive orders could not be immediately verified by Reuters, and the White House did not provide a comment. Current know-your-customer rules mandate verifying identity and basic data like Social Security numbers but do not necessitate checking citizenship or immigration status.
Banks had expressed concerns that verifying documents for new customers could be onerous and challenging for existing ones, potentially leading to limitations on online account openings. The requirement also posed enforcement risks for banks if authorities pursued them for inadequate document checks.
AI technology is revolutionizing the stock market, with Investing.com's ProPicks AI offering winning stock portfolios selected by advanced AI algorithms. The Tech Titans strategy, for instance, outperformed the S&P 500 by doubling returns within 18 months, with notable gains from stocks like Super Micro Computer (+185%) and AppLovin (+157%). Stay tuned to discover the next stock poised for a significant surge.