H.R. 7842: Alien Banking Act

This bill, titled the Alien Banking Act, proposes changes to the way financial institutions verify the immigration status of individuals wishing to open deposit accounts. Here’s a breakdown of what the bill entails:

Immigration Status Verification

The bill amends existing legislation to require all financial institutions to verify the lawful immigration status of individuals applying for deposit accounts. Specifically, individuals will need to:

• Complete a self-attestation form as part of their application, affirming their legal presence in the U.S. This could involve checking a box or similar means to indicate whether they are a U.S. citizen, lawful permanent resident, or otherwise lawfully present.
• Provide this attestation under penalty of perjury, meaning they must affirm the truthfulness of their statements.

Prohibition on Accounts for Unlawfully Present Individuals

The bill includes a provision that prevents financial institutions from opening or maintaining accounts for individuals who do not provide the required attestation regarding their immigration status.

Penalties for False Attestations

Individuals who knowingly make false statements on their attestation may face severe penalties, which include:

• Civil Penalties: Fines ranging from $10,000 to $50,000.
• Criminal Penalties: Fines up to $250,000 and/or imprisonment for up to 5 years.
• Asset Forfeiture: Any property in an account where a false attestation was made may be subject to civil and criminal forfeiture, in accordance with existing laws related to money laundering.

Reporting Requirements

If a financial institution suspects that an individual has made a false attestation, it is required to report this suspicion to the Secretary of Homeland Security and the Attorney General.

Implementation

The Secretary of the Treasury, in consultation with other officials, is tasked with issuing regulations to implement these amendments within 180 days of the bill becoming law. This includes developing:

• Model language for the self-attestation form.
• Guidelines for reporting any suspected false attestations.

Effective Date

The new rules would go into effect one year after the bill is enacted.

Relevant Companies

None found