Bank regulator announces actions to eliminate unlawful debanking

[Bank building]
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The Office of the Comptroller of the Currency on Monday announced [https://www.occ.treas.gov/news-issuances/news-releases/2025/nr-occ-2025-84.html] actions to eliminate politicized or unlawful debanking in the federal banking system.

The move follows the drafting of an executive order [https://seekingalpha.com/news/4478119-trump-administration-draft-order-debanking] by the Trump administration, which directs regulators to fine banks that drop customers for political reasons.

"We are working to root out bank activities that unlawfully debank or discriminate against customers on the basis of political or religious beliefs, or lawful business activities," said Comptroller of the Currency Jonathan Gould.

The OCC issued two bulletins to banks in connection with the so-called debanking.

In one of the bulletins, the regulator clarified how it considers a bank's past record and current policies and procedures to avoid engaging in politicized or unlawful debanking.

The OCC initially requested information from its nine largest regulated institutions regarding their debanking activities. Additionally, it updated its online customer complaint website to assist consumer reporting and agency identification of any unlawful debanking.

In a separate bulletin, the regulator reminded financial institutions of the limited circumstances that allow for the release of customer financial records and the proper use of suspicious activity reports.

Additionally, the regulator said it is reviewing its approaches to Bank Secrecy Act/anti-money laundering supervision to ensure they are not contributing to unlawful debanking.

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