WASHINGTON—The nine largest banks in the United States in recent years have restricted financial services to some clients in controversial industries, such as adult entertainment, notes the federal Office of the Comptroller of the Currency (OCC).
Under the Treasury Department, the OCC regulates national banks and banking products to ensure equitable access to financial products. Pursuant to an executive order issued by President Donald J. Trump, the office initiated research into whether the significant financial institutions debanked clients from controversial industries.
The OCC released preliminary findings from this research, noting that banks such as JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank engaged in debanking.
Such a practice affects a wide range of sectors, like tobacco and e-cigarette companies, oil and gas, digital assets, and adult entertainment companies.
“The OCC is committed to ending efforts—whether instigated by regulators or banks—that would weaponize finance,” explained Jonathan Gould, the Comptroller of the Currency, in a press statement. "Although our work continues, the OCC is today providing visibility into the debanking actions against customers and lawful businesses taken by the nation’s largest banks to ensure public awareness, and to halt these harmful and unfair practices.”
In response to OCC's statements, the Bank Policy Institute (BPI) said that major banks support equitable access but want more clarity from the government.
“It’s in banks’ best interest to take deposits, lend to, and support as many consumers and businesses as possible to drive economic growth," shared the institute, which serves as a trade group for major financial institutions throughout the United States. BPI represents banks like Chase, BNY, Capital One, and American Express.
"The industry supports fair access to banking and is already working together with Congress and the administration to ensure banks are able to serve law-abiding customers. We also support recent regulatory efforts and clear and consistent standards that protect access to America’s banking system while maintaining sound risk management.”
The Free Speech Coalition (FSC), a trade group representing the adult entertainment industry, has endorsed equitable banking standards to prevent debanking and other forms of censorship linked to financial services removal. FSC members received an email today from the organization applauding the findings from OCC's research.
"Not only has the federal government recognized that our industry experiences banking discrimination, it has identified it as a problem to be solved," reads the email.
The OCC's research explicitly notes, "[lines] of business within some banks either strictly restricted access to, or required escalated review for, certain financial products or services in connection with customers engaged in the sale or distribution of adult media and non-media."
