OCC Accuses Nine Large Banks of Engaging in Improper Debanking Actions

The Office of the Comptroller of the Currency (OCC) said Wednesday that nine major U.S. banks engaged in “inappropriate” customer discrimination by maintaining policies that limited or restricted banking access for clients associated with certain controversial industries. Although the agency did not release case-specific examples, it pointed to policy statements issued between 2020 and 2022 as evidence of practices that could have unlawfully influenced customer access to financial services.

JPMorgan Chase, Bank of America, Citi, Wells Fargo, U.S. Bank, PNC, Capital One, TD and BMO were named in the OCC’s preliminary report. The agency said these institutions, at various points, applied escalated review processes or declined services to customers tied to sectors such as oil and gas, coal, firearms, private prisons, tobacco, payday lending, adult entertainment, digital assets and political organizations.

The issue gained national attention earlier this year when President Donald Trump publicly accused Bank of America of debanking conservatives during remarks at the World Economic Forum. The bank rejected the claim, stating that it does not close accounts based on political views. CEO Brian Moynihan later reaffirmed that the bank does not apply political criteria but acknowledged broader concerns regarding regulatory pressure.

Since early 2024, banks have begun revising their environmental, social and governance (ESG) and diversity policy language amid political scrutiny. Citi notably dropped a seven-year-old policy limiting firearms sales by retail clients, signaling a broader industry effort to reduce politically sensitive commitments.

The OCC said banks will now face heightened oversight regarding debanking practices. In September, the agency stated it would evaluate institutions “on a case-by-case basis” to determine whether customer access was restricted for political or otherwise unlawful reasons. Such findings could influence future licensing applications and Community Reinvestment Act performance reviews.

The OCC’s report represents one of the strongest federal warnings yet against politically influenced service decisions. As regulatory attention intensifies, banks may need to continue adjusting internal policies to ensure that risk-management frameworks do not indirectly limit access for lawful businesses or political groups.

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