OCC says all nine largest national banks used vague "reputation risk" policies that could cut off customers

The Office of the Comptroller of the Currency (OCC) said Wednesday that all nine of the largest national banks it supervises used "reputation risk" policies without clear, objective standards, which could disadvantage customers because of their political or religious views or lawful business activities. CNBC reported the findings, and Fox Business reported the Comptroller's characterization of them.

What the report covers

The review covered JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank and BMO. Per CNBC, the OCC examined nearly 100,000 complaints and about 420,000 pages of documents, under a Trump executive order issued last year. Comptroller Jonathan Gould said the agency found "irrefutable evidence" of banks denying and discriminating against customers and lawful businesses, per Fox Business.

Examples cited include a JPMorgan subsidiary, WePay, closing accounts of merchants selling Trump and conservative merchandise, using a screening list with terms such as "MAGA." JPMorgan told CNBC the process "did not meet our expectations" and that it fixed the issue and shut the business down. The report also found cases cutting the other way: CNBC said Capital One declined an abortion-rights group after noting about 95% of its political contributions went to Democrats, and also passed on a gun-rights group over endorsement concerns.

Beyond politics: whole industries

The OCC found restrictions affecting firearms, fossil fuels, private prisons, tobacco and crypto, with banks' appetite shifting with the political climate, risking a "whipsaw" between administrations (CNBC). Cointelegraph noted the report gave no specific crypto examples and that the OCC said it was "unable to quantify on a comprehensive basis the full extent of debanking."

What happens next

No fines or sanctions were announced. The OCC said it is considering additional rules to prevent political or religious discrimination and is examining whether anti-money-laundering compliance itself has contributed to debanking. All nine banks said they have revised their policies, but the regulator said none has fully acknowledged past decisions or built a program to remediate affected customers. The Bank Policy Institute said the industry supports "clear and consistent standards" and that beliefs should not affect access.

The report arrives a day after the OCC and other Treasury regulators imposed more than $1.2 billion in penalties on Bank of America over anti-money-laundering failures; see our coverage.

What it means for business owners

• Owners in regulated or disfavored categories (firearms, energy, cannabis-adjacent, crypto, adult-age-restricted retail): expect banks to be asked for written, objective criteria. Ask your bank for its account-closure policy in writing.
• Keep a second banking relationship. A closure notice can arrive with little warning, and rules are only proposed.
• Banks: the compliance burden is likely to shift to documenting risk-based decisions, which matters for any customer flagged for anti-money-laundering review.

Sources: CNBC; Fox Business; Cointelegraph. This is market information, not investment advice.