S 4206

The Know Your American Customer Act aims to strengthen financial security by requiring U.S. financial institutions, like banks and credit unions, to verify the citizenship and legal status of their customers. Specifically, the bill mandates that these institutions obtain documentation proving an individual’s lawful presence in the United States – such as a U.S. passport, driver’s license, or birth certificate – before opening or maintaining an account. It also establishes procedures for freezing or closing accounts of individuals who are not lawfully present, with a focus on protecting consumers and preventing illicit financial activity. Finally, the bill includes provisions addressing potential penalties and enforcement.