The unexpected announcement that undocumented immigrants will be able to open bank accounts has become something of a sensation. In their haste, some mass media outlets incorrectly reported that banks would issue credit cards to undocumented immigrants, causing outrage among conservatives.
But really the only change is that people who are in the United States illegally and who do not have Social Security numbers will now be able to open bank accounts.
“Undocumented workers represent a nice chunk of business for banks," commented Chane Peterson, executive vice-president at the Banco Popular. "American financial institutions waste millions of dollars a year trying to attract new clients. Banks will make astronomical profits by allowing the undocumented to open accounts."
Naturally, there are many opposed to the change. Conservatives have called it a "legal support of terrorism." Now, they say, every terrorist in the United States can easily receive wire transfers from abroad.
"We are legalizing financial fraud by allowing criminals who have violated U.S. residency rules to open bank accounts," said the political analyst Michael Cutler. "We are rewarding people who have broken our laws."
However, in order to open an account, undocumented immigrants must have an individual taxpayer identification number (ITIN), an alternative to the Social Security number.
"People with ITINs are obliged to pay taxes," stated Will Connelly, a spokesperson for Bank of America. "If they don't, they are committing a felony. So allowing undocumented immigrants to open accounts only encourages them to file their taxes more accurately."
It's worth noting that the change adds transparency to the financial transactions that undocumented immigrants make. Also, in order to open an account, undocumented immigrants will have to present identification. So the risk of people using fake or stolen documents is slim.
"Banks have unanimously come out in support of undocumented immigrants," noted Helen Grilish, a spokesperson for a large banking company in California. "Undocumented immigrants do not want to break the law. They want to show their willingness to serve America and work for its benefit."
Financial experts note that now it's just a matter of time before banks start issuing credit cards to undocumented immigrants. Moreover, it could become legal for an undocumented immigrant with an ITIN and a clean criminal record and credit history to take out a mortgage and consequently purchase real estate in the United States.
"Immigration reform will be accomplished at some point, so it makes sense to give undocumented immigrants access to bank accounts. Financial companies, tax agencies, real estate agencies, and mortgage companies will all benefit from this," explained Fred Derrickson, a banker.
The mass media has already started talking about a process of "social equalization" that will, in time, erase the border between legal and undocumented residents.
