Op-Ed: Sen. Tom Cotton: Secure America’s banks

Time and again, Democrats have shown their hand as the party that cares more about rewarding criminal illegal aliens than protecting law-abiding Arkansans. Such was the case last week, when every Democratic Senator tried to block funding for immigration enforcement. So, what did Republicans do? Exactly what voters have asked: secure our border and back our immigration enforcement officers to the hilt.

To end the Democrat-inflicted illegal immigration crisis, we must remove incentives for illegal immigration, shut down the mechanisms immigrants use to enter our country illegally, and eliminate the tools they use to stay here. With the U.S. southern border secure—thanks to President Trump—and ICE and Border Patrol fully funded for years to come, we must now turn our attention to securing America’s banking system.

Roughly 14 million illegal aliens remain in this country. The reason is, in part, due to the U.S. banking structure, which extends economic ease, convenience, and flexibility to its customers, irrespective of immigration status. Put differently, our financial system was built to clear payments, open accounts, and extend credit without ever asking whether a customer is legally permitted to be here. The result is a banking framework that quietly underwrites every illegal immigrant’s ability to settle, live, and work in America.

Consider that under this flawed framework, illegal aliens can open a U.S. bank account using foreign-issued identification documents and deposit cash at a local bank branch, regardless of where the cash came from. And here’s what happens next. With an active U.S. bank account, an illegal alien can conduct cashless transactions, open lines of credit, and utilize other services needed to put down financial roots in the United States. They can also send money back home to pay coyotes to transport friends and family across the border, further perpetuating the dangerous and illicit business of human smuggling.

In short, our banking system has removed the financial incentives for illegal aliens to return home and, instead, has supplied the financial tools needed to bring more illegal aliens here.

While some illegal aliens use the virtually unfettered access to the U.S. banking system to integrate economically, make no mistake, others use it for much more nefarious ends. In particular, American banks’ ability to recruit customers of any legal status has become a pressing concern after Joe Biden’s open border policies invited gang members, cartel bosses, drug traffickers, and terrorists into our communities.

Bottom line, the flaws in our banking system hurt hard-working, law-abiding Arkansans and endanger our communities. Only American citizens, permanent residents, or individuals legally in the U.S. should be able to access the financial services of a federally insured bank or credit union. For these reasons, I introduced the Know Your American Customer Act, which will require proof of legal status for new customers opening a new bank account. To avoid disruptions for Arkansans—especially elderly Arkansans—current account holders will not need to provide any new documentation to keep their bank accounts open and to maintain access to other banking services.

In addition, last fall, I wrote to Treasury Secretary Scott Bessent, urging him to review the rules that allow illegal aliens to open U.S. bank accounts using foreign identification; I’m pleased that President Trump mandated this review in a recent executive order. With the President’s executive order in force, I remain committed to working hand in glove with the administration and my colleagues in Congress to secure our banking system and pass the Know Your American Customer Act.

Those who have no business being in our country have no business being in our banks. As the world’s leading economic powerhouse, it’s high time we ensure that the privilege of using America’s financial institutions is reserved for Americans and those who respect our laws. Only then will the United States remain the strongest, most prosperous, and most resilient financial system for generations to come.

Senator Tom Cotton represents Arkansas in the U.S. Senate, he is the Chairman of the Senate Intelligence Committee, and he is the Chairman of the Senate Republican Conference.