Good morning. The Trump administration is weighing a possible executive order or other action that would require banks to collect citizenship information from customers, a new front in the administration’s crackdown on immigrants living in the U.S. illegally, according to people familiar with the matter.

• Checking papers: The action, which is primarily under review by the Treasury Department, could ultimately task banks with asking for an unprecedented new category of documents, such as passports, from both new and existing customers who want to maintain a bank account in the U.S., the people said.
   
• Know your customer: Banks in the U.S. are required to collect certain information under “know your customers” rules to guard against money laundering and crime. That often includes collecting passports and Social Security numbers. But those rules don’t include gathering citizenship status specifically and banks don’t routinely share that information with the government. There is no prohibition on banks opening accounts for noncitizens in the U.S.
   
• Concern from bankers: Discussions about the potential executive order have alarmed banks in recent days and prompted lobbying to the Treasury, some of the people said. The administration was still reviewing its options, including the potential for an executive order or Treasury action, the people said.

Pentagon gives Anthropic ultimatum and deadline in AI use standoff.

Defense Secretary Pete Hegseth gave Anthropic Chief Executive Dario Amodei until Friday to comply with the Pentagon’s demands on using its artificial-intelligence models or face cancellation of the company’s contract, people familiar with the matter said.

The ultimatum came at a Tuesday meeting at the Pentagon that ended in a stalemate, the people said. If Anthropic doesn’t show more flexibility working with the military, Hegseth said he could also label the company a supply-chain risk, a move typically reserved for overseas companies linked to foreign adversaries, or invoke the Defense Production Act to essentially force the company to work more collaboratively with the Pentagon.

SEC to give more time to respond to target letters.

The U.S. Securities and Exchange Commission said it would give targets of its probes additional access to its investigative files and more time to respond to initial disclosures notifying them they are under investigation, Risk Journal reports.

An update to the SEC enforcement manual made public Tuesday said the agency would give investigation targets access to portions of its evidence against them on a case-by-case basis. The update also dictates investigation targets will now typically have four weeks, rather than two, to respond to a so-called Wells Notice, in which the SEC notifies the recipient the agency has made a preliminary recommendation to the commission to take an enforcement action.

• The U.S. has imposed its first sanctions under a law meant to address trade secret theft, targeting a Russian national who allegedly distributed proprietary cyber tools.
   
• A federal judge rejected a Justice Department request to search devices seized from a Washington Post reporter as part of an investigation into alleged mishandling of classified information by a government contractor, ruling that the court would carry out the review.

Beijing sees opening in U.S. trade war after court blunts Trump’s tariff weapon.

With President Trump on the back foot following a stinging judicial rebuke of his power to impose tariffs, Xi Jinping is spying a chance to reset relations with the U.S. on Beijing’s terms.

The Supreme Court has effectively dismantled the cornerstone of Trump’s trade strategy, ruling that the White House can’t use emergency powers as a blank check to levy broad, across-the-board tariffs. By stripping away these duties, the court hasn’t just limited the president’s firepower. It has deprived him of his preferred weapon of economic pressure just weeks before he lands in Beijing for a summit with the Chinese leader.

• China banned the export of critical minerals and other goods with potential military uses to several major Japanese companies, further escalating its pressure campaign against Tokyo over remarks Prime Minister Sanae Takaichi made about Taiwan.
   
• Canada’s aviation regulator has approved for flying Gulfstream’s G700 and G800 aircraft models, potentially bringing to a close a trade row with Washington.
   
• Tensions are growing in Iran between antiregime activists and pro-government militias as the two sides clashed Tuesday during protests on campuses for a fourth consecutive day.
   
• A doomsday AI memo has spooked markets.

Join us in New York on March 4 for the Dow Jones Risk Journal Summit. Speakers include Kaitlin Asrow, acting superintendent of the New York Department of Financial Services; Erika Brown Lee, head of global data privacy legal, Citi; Beth Collins, chief compliance officer, Walmart; Indrani Franchini, chief compliance officer, IBM; and Kevin O’Connor, general counsel, Lockheed Martin.

Request a complimentary invitation here using the code COMPLIMENTARY. Attendance is limited, and all requests are subject to approval.

• Meta Platforms has agreed to buy 6 gigawatts’ worth of artificial intelligence computing power from Advanced Micro Devices in a deal valued at more than $100 billion.
   
• Novo Nordisk plans to slash U.S. list prices for its popular weight-loss and diabetes drugs Wegovy and Ozempic by up to half starting next year.
   
• The head of the Louvre stepped down Tuesday, after the leadership of the world’s most visited museum faced pressure in recent weeks over staff strikes, maintenance problems and security weaknesses exposed by a high-profile jewel heist.
   
• Managers are using AI to handle more of their paperwork, and that includes one of the most delicate parts of a boss’s job: performance reviews. But doing that can be risky.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at david.smagalla@wsj.com.