On September 8, the Office of the Comptroller of the Currency (OCC) took significant action to “depoliticize” the federal banking system by issuing two bulletins to banks that further the goals of Executive Order 14331 “Guaranteeing Free Banking for All Americans” (discussed here). The OCC’s press release announcing the bulletins explains that they are aimed at eliminating politicized or unlawful debanking practices and ensuring that banks provide access to financial services based on objective, risk-based analyses rather than political or religious beliefs. Bulletin 2025-22 clarifies how politicized or unlawful debanking will be assessed in licensing applications and Community Reinvestment Act (CRA) performance evaluations. Bulletin 2025-23 reminds banks of their legal obligations under the Right to Financial Privacy Act (RFPA) to protect customer financial records and ensure proper use of Suspicious Activity Reports (SARs).
In the press release, Comptroller of the Currency Jonathan Gould emphasizes the OCC’s dedication to ending the weaponization of the financial system. As stated by Gould, the OCC is actively working to identify and address bank activities that unlawfully debank or discriminate against customers based on political or religious beliefs or lawful business activities. As part of its efforts to address debanking, the OCC previously requested information from its nine largest regulated institutions regarding their debanking activities and updated its online customer complaint website to better identify unlawful debanking practices.
Licensing and CRA Considerations
Bulletin 2025-22 provides clarity on how alleged politicized or unlawful debanking will be assessed in licensing applications and CRA performance evaluations. The bulletin states that the OCC reviews licensing filings for specific evaluative factors prescribed by statute and regulation, and that “[p]oliticized or unlawful debanking by banks” may implicate these factors, “which range from the convenience and needs of the community to be served, fair access to financial services, fair treatment of customers, and the transaction’s impact on depositors, other creditors, and customers.” The bulletin further states that the OCC will consider “a bank’s record of and policies and procedures designed to avoid engaging in politicized or unlawful debanking consistent with the applicable evaluative factors.”
Similarly, in assessing an insured bank’s performance under the CRA, the bulletin states that the OCC will consider the bank’s record of meeting the credit needs of its entire community, which includes “whether a bank has engaged in politicized or unlawful debanking.”
With respect to both licensing and CRA evaluations, the OCC will tailor its consideration of politicized or unlawful debanking based on the size, complexity, and risk profile of the relevant bank.
Protecting Customer Financial Records
Bulletin 2025-23 reminds banks of their legal obligations to protect customer financial records. This reminder follows an investigation by the U.S. House of Representatives Committee on the Judiciary and the Select Subcommittee on the Weaponization of the Federal Government, which found that, following the events of January 6, 2021, financial institutions coordinated with federal law enforcement to surveil and share the private financial information of persons engaged in transactions commonly associated with conservatism and the political right.
The bulletin explains that these findings “raise serious concerns and doubts about financial institutions’ commitment to respecting Americans’ privacy rights and fundamental liberties.” Accordingly, the bulletin emphasizes the need for financial institutions to comply with the RFPA, which prohibits financial institutions from providing government access to customer financial records except in limited circumstances. The bulletin also reminds banks to ensure proper use of SARs. Specifically, it states that while banks may voluntarily file SARs with respect to any suspicious transaction they believe is relevant to the possible violation of any law or regulation, they should not use voluntary SARs as a pretext to improperly disclose customers’ financial information or evade the RFPA.
Our Take
The OCC’s latest actions represent another notable federal agency action to enforce Executive Order 14331, while also signifying a culmination of many years of the banking industry’s pleas for clearer regulatory guidance for banks providing services to certain industries or clients that are deemed to be more “risky” than mainstream businesses. OCC-supervised banks should review the OCC’s guidance and “adjust their policies and procedures” as needed, particularly to determine whether any of their activities could be considered debanking practices that require changes and may require action to redefine risk tolerance level or risk appetite. Whether or not any update to a bank’s policies or procedures is warranted, banks should make sure to always include, in an account closure file, a substantiated and detailed written rationale regarding the bank’s reason(s) for closing a customer account.
