OCC issues information on ‘debanking’

The Office of the Comptroller of the Currency issued two bulletins on Monday for financial institutions “to eliminate politicized or unlawful debanking in the federal banking system.”

The first bulletin seeks to remind banks of their legal obligations to protect their customers’ financial records, “even if that information is requested by government agencies,” according to the OCC. The second bulletin clarifies how the agency considers politicized or unlawful debanking in licensing applications filed by banks and banks’ records of performance under the Community Reinvestment Act.

President Trump last month signed an executive order directing federal agencies to investigate whether banks and credit unions denied services to customers because of their political beliefs or because they were engaged in certain business activities, such as cryptocurrency. The two bulletins implement that order, and the OCC has also updated its online customer complaint website to allow consumers to report “unlawful debanking” by banks.

Earlier this month, the Small Business Administration sent a letter to over 5,000 lenders in response to President Trump’s executive order “Guaranteeing Fair Banking For All Americans.”