“Trump Administration Considers Requiring Banks to Collect Citizenship Information”
The Treasury Department is weighing whether to require banks to collect customers’ citizenship information, potentially through an executive order or FinCEN rulemaking. Banks would be asked to obtain documentation such as passports from new and possibly existing customers, expanding KYC requirements under the Bank Secrecy Act. No final decision has been announced, and industry groups have raised concerns about the legal basis and operational burden.
For more on the potential executive action and its implications, check out this week’s episode of Banking with Interest, where I speak with Wall Street Journal reporter Dylan Tokar, who co-wrote the story.
“FinCEN Seeking Advisors for Panel on Modernizing AML”
Speaking of BSA, FINCEN is soliciting nominations for its advisory panel as the administration looks to streamline AML compliance. The panel, which includes financial institutions, regulators, and law enforcement, will help shape BSA reform efforts and implementation of the recently passed GENIUS Act governing stablecoins. Treasury said it is particularly interested in input from community banks.
Earlier this year on Banking with Interest, Juan Zarate, who helped create the current AML framework 25 years ago at Treasury, assessed the current system’s shortcomings and the Trump Administration’s reform agenda.
“How the OCC Is Handling Its Charter Application Workload”
The OCC received 18 bank charter applications in 2025, equal to the total from the previous four years combined. Comptroller Jonathan Gould has called the surge a “return to the norm,” though application levels remain well below pre-2008 highs. Gould also noted that the post-crisis decline in new bank charters reflected regulatory risk aversion, arguing that responsible de novo activity signals a healthy system.
“‘The Branch Is Dead’ … Is Dead: Have We Reached National Branch Equilibrium?”
Net branch closures slowed significantly last year, with a decline of roughly 400 locations. After years of consolidation driven by overlap, rural population loss, and pandemic-era cuts, big banks like JPMorgan continue to expand selectively. The trend suggests the industry may be reaching a new equilibrium rather than continuing a structural retreat.
“How the Fed Is Making AI ‘Durable’”
In remarks at a Boston Fed event, Governor Christopher Waller said the central bank is embedding AI across all 12 reserve banks. He emphasized that AI will augment (not replace) existing staff, and that realizing its benefits will require organizational redesign.
“How AI Is Permeating Work Throughout TD Bank, and Lessons Learned”
TD Bank is targeting $1 billion in annual value from AI initiatives, split between cost savings and revenue gains. The bank is expanding generative and agentic AI across operations while maintaining model risk, compliance, and data privacy controls, with a “human in the loop” for customer-facing applications. The key takeaway: Disciplined integration matters more than speed.
“Stablecoin and the Disciplined Path Forward for Community Banks”
Stablecoins represent an alternative settlement architecture, not a direct replacement for traditional payment rails. They introduce counterparty and operational risks compared with deposits. For community banks, early use cases will likely focus on back-end settlement and carefully structured fintech partnerships.
In Other News
A look at key policy themes from President Trump’s State of the Union address, the most annoying buzzwords in business, and yet another viral AI doomsday report—this time focused on investor fears of labor-market disruption.