Rep. Cleaver wants Congress to question banks asking for proof of citizenship

U.S. Rep. Emanuel Cleaver II is asking the House Financial Services Committee to hold a hearing looking into a recently revealed banking policy that requires some longtime customers to establish proof of citizenship.

The Star reported in late July that Bank of America had briefly frozen the checking account of a Roeland Park couple, Josh and Jessica Salazar Collins, after they failed to respond to a mailed questionnaire asking, among other things, if Josh Collins was a U.S. citizen or had dual citizenship with another country.

Cleaver, a Kansas City Democrat who serves on the Financial Services Committee, said in a statement released Thursday that he wanted U.S. bank regulators to “provide perspective, seek clarity and identify a solution” as to the need for Bank of America and other large institutions to inquire about citizenship when updating customers’ information.

“What quantifiable measures have banks put into place to ensure this new proof of citizenship protocol is not causing a significant invasion into a customer’s individual privacy,” Cleaver asked in an Aug. 15 letter to committee leadership.

The Collinses, who are lifelong American citizens, said they puzzled over a bank mailing earlier in the summer that asked citizenship questions regarding an account they’ve held for more than 15 years. About a month after discarding the questionnaire, the couple discovered their funds were inaccessible.

When appearing in person at a branch, a Bank of America employee asked to see their driver’s licenses and re-activated their account.

A corporate spokeswoman told The Star that Bank of America was “required by law to maintain complete and accurate records for all of our customers and may periodically request information, such as country of citizenship and proof of U.S. residency.”

While some other federally chartered financial institutions acknowledged asking such questions when customers open an account, the U.S. Office of the Comptroller of the Currency, which regulates national banks, does not require information on citizenship.

Federal regulation require only that bankers “form a reasonable belief that it knows the true identity of each customer.”

And the Department of the Treasury has stepped up efforts to keep customers’ information updated and verified to thwart money laundering and other illegal practices. Some banks have pointed to provisions of the USA Patriot Act in seeking the information.

Cleaver asked in his letter that the House committee call representatives of the comptroller office, Financial Crimes Enforcement Network and large banks to testify about safeguards in place for information provided by customers at a time of heightened fears on non-citizens.

Among other questions he wants addressed is if banks may report non-citizen account holder information to U.S. Immigrant and Customs Enforcement.

Bank of America did not immediately respond Thursday to requests for comment.