On September 8, the OCC announced new actions that aim to eliminate “politicized or unlawful debanking” in the federal banking system, consistent with Executive Order 14331: “Guaranteeing Fair Banking For All Americans” (previously covered by InfoBytes here). Comptroller Jonathan Gould stated the OCC was “taking steps to end the weaponization of the financial system” and would act to address bank activities that unlawfully debank or discriminate against customers based on political beliefs, religious beliefs, or lawful business activities.
Bulletin 2025-22: “Licensing and Community Reinvestment Act: Consideration of Politicized or Unlawful Debanking” clarified that the OCC will consider a bank’s record and policies and procedures on politicized or unlawful debanking when reviewing licensing filings — including new charters, conversions, fiduciary powers, branching, business combinations, voluntary liquidation, changes in control, changes in directors and senior executive officers, and substantial asset changes. The bulletin also advised that these factors would also be considered in a bank’s CRA performance evaluation. The OCC stated it will tailor its assessment of politicized or unlawful debanking in licensing applications filed by a bank and in a bank’s record of performance under the CRA based on the size, complexity, and overall risk profile of the relevant bank, and will update relevant handbooks and regulations to reflect these principles.
Referencing the Executive Order and noting that the Order provides in part that financial institutions participated in government-directed surveillance programs targeting persons participating in activities and causes commonly associated with conservatism and the political right, Bulletin 2025-23: “Protecting Customer Financial Records” reminded banks of their obligations under the Right to Financial Privacy Act (RFPA) and the proper use of Suspicious Activity Reports (SARs). The OCC emphasized that banks “are required to protect their customers’ financial information, even if requested by government agencies” and should not use voluntary SARs as a pretext to disclose customer information improperly or evade the RFPA. The bulletin outlined the legal requirements for disclosure of customer records and stressed that banks should only file voluntary SARs when there is concrete suspicious activity, and not as a means of circumventing privacy protections.
The OCC indicated it is reviewing its supervisory approaches — including BSA/AML oversight — to ensure they do not contribute to unlawful debanking and will propose further regulatory changes if deemed necessary. The agency updated its consumer complaint website to assist in identifying and addressing unlawful debanking.
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