Along with the ongoing wave of misinformation surrounding deportations, the media and Twitter mobs are now spreading yet another myth: that U.S. banks are closing immigrant bank accounts or shutting down accounts simply because the holders are suspected of being non-citizens. Once again, these claims are either a gross misrepresentation of the truth, or outright lies. You can decide for yourself after reading the facts.
Under U.S. law, non-citizens are legally permitted to hold bank accounts. Financial institutions, routinely offer accounts to foreigners, provided they can verify identity and legal status through documents such as a passport, visa, or a taxpayer identification number. Typically, that means a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) is required.
An ITIN is a nine-digit number issued by the IRS for tax filing purposes when the individual is ineligible for an SSN. Many temporary visa holders, such as international students or foreign workers, receive ITINs that are valid for the duration of their legal stay. However, there are multiple scenarios in which a bank account associated with an ITIN could be temporarily frozen due to compliance issues, not discrimination.
For example, an ITIN automatically expires if it hasn’t been used on a tax return for three consecutive years. Changes in immigration status may also affect whether the person is still eligible for an ITIN or required to obtain an SSN instead.
If a person extends their visa, their existing ITIN usually remains valid, provided it hasn’t expired due to non-use or IRS deactivation. However, it is still the account holder’s responsibility to notify the bank of the extension and to provide updated documentation to prevent any compliance interruptions.
When an immigrant’s legal status changes and they become eligible for a Social Security Number, they are required to stop using their ITIN. The new SSN is a completely different number, and the IRS must be notified so that the ITIN record can be merged with the SSN. Financial institutions must also be informed of the change.
If the bank continues to hold the outdated ITIN on file while the individual is now filing taxes or receiving employment income under an SSN, this can trigger an inconsistency. In such cases, the bank may flag the account and freeze access until the customer provides proof of the new SSN. Once verified, the bank will update its records and use the SSN as the official taxpayer ID, restoring access to the account. This process ensures compliance with federal Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Changes in visa category, such as switching from an F-1 student visa to an H-1B work visa, can also prompt banks to request updated documentation. If the customer fails to respond, the account may be frozen temporarily until the bank is able to confirm the updated legal status. Likewise, if a visa expires and the bank has not received updated proof of continued residency, it may restrict access until the situation is resolved.
Financial institutions are required by law to conduct regular reviews of customer documentation. If an account holder fails to respond to a request for updated ID, visa status, or taxpayer information, the bank may freeze the account as a precautionary measure. Furthermore, if there are inconsistencies between the taxpayer ID on file and the one being used in employment records or tax filings, this can raise red flags under AML protocols. Again, these freezes are lifted once the documentation is clarified.
In addition to standard KYC and AML regulations, banks must also comply with Office of Foreign Assets Control (OFAC) regulations, which prohibit financial transactions involving certain sanctioned individuals, entities, or countries. As a result, customers who were born in countries currently under U.S. sanctions may face additional scrutiny, even if they are now U.S. citizens. These reviews are not about immigration status but about legal obligations tied to foreign policy.
Countries that may fall into this high-risk category include Cuba, Venezuela, Nicaragua, Iran, North Korea, Russia, Syria, and several others facing U.S. sanctions or targeted financial measures. Banks have explained that in some cases, temporary restrictions are applied solely because a client’s background may require enhanced verification under OFAC guidelines. These regulations are binding, and failing to follow them would expose the bank to serious federal penalties.
In early 2025, the Office of the Comptroller of the Currency (OCC) issued a cease-and-desist order against Bank of America for deficiencies in its compliance with the Bank Secrecy Act and AML requirements. Although this enforcement action did not specifically target immigrant accounts, it did prompt the bank to adopt stricter protocols in verifying customer information, which may explain an increase in requests for updated documentation.
Consequently, Bank of America became one of the primary targets of social media outrage and media accusations, with claims circulating that the bank was freezing accounts belonging to immigrants or individuals suspected of being non-citizens.
Meanwhile, misinformation has been circulating on social media, falsely claiming that the federal government is freezing accounts simply because they are opened with ITINs. This is entirely untrue. Organizations like Enlace Latino NC have publicly debunked these viral claims, confirming that there is no federal directive ordering the closure of immigrant bank accounts. ITINs remain a legitimate form of taxpayer identification for individuals ineligible for SSNs, and many banks, Bank of America included, continue to accept them.
The bottom line is simple: banks are not targeting immigrants. They are complying with federal rules that apply to all customers. The panic being stirred on social media is based on misinterpretation or outright dishonesty.
The post More Media Lies: NO! Banks Are Not Arbitrarily Closing Immigrant Bank Accounts appeared first on The Gateway Pundit.