WASHINGTON — U.S. banking regulators are examining allegations that major lenders improperly closed customer accounts on political or religious grounds, with the Office of the Comptroller of the Currency poised to release findings from a supervisory review in the coming weeks, people familiar with the matter said.
The review focuses on whether large institutions, including JPMorgan Chase and Bank of America, denied services or terminated relationships based on customers' religious or political views, a practice often referred to as "debanking," according to sources who spoke on condition of anonymity.
The Justice Department has issued subpoenas to several major banks, including JPMorgan Chase, Bank of America and Wells Fargo, seeking information on account closures and service denials potentially linked to political beliefs, the Wall Street Journal reported. The subpoenas, some sent last year, expand on efforts backed by President Donald Trump to investigate such claims.
The Office of the Comptroller of the Currency has been conducting a supervisory review of the nine largest national banks it oversees. Preliminary findings released late last year highlighted past policies at some institutions that restricted access for certain sectors, including those related to firearms, energy and political activities, between 2020 and 2023, OCC officials said.
Lenders are preparing for potential public scrutiny and disciplinary actions as the OCC wraps up its work, several people with knowledge of the matter told Reuters. Banks have been asked to provide detailed information on account closure decisions.
"This review aims to ensure that financial services are provided based on individualized, objective and risk-based criteria rather than non-financial considerations," an OCC spokesperson said in a statement.
The probe follows executive actions and congressional scrutiny aimed at addressing complaints from individuals and businesses, including in the cryptocurrency sector, who claimed their accounts were closed for ideological reasons. Federal regulators have also reviewed their own past supervisory practices that may have contributed to such outcomes through emphasis on "reputational risk."
Industry representatives have noted that many account closures stem from compliance with anti-money laundering and know-your-customer regulations rather than political motivations. Details on specific cases under investigation remain limited.
As of Monday, the OCC had not released final findings or announced enforcement actions related to the latest review. The Justice Department declined to comment on ongoing investigations.
Major banks have stated they make decisions based on risk assessments and regulatory requirements. The full scope of any potential disciplinary measures or referrals remains unclear as authorities continue their work.
