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Debanking, also known as de-risking, means closing bank accounts. This is often done because the account is considered risky to the bank in some way.* * * A simple debank definition is a financial institution closing or restricting banking services for a specific account. It can happen for various reasons, from regulatory compliance to risk mitigation by banks. A bank may close an account because of insufficient funds, inactivity, suspected fraud, or other illegal activity. They may also close accounts as a preventative measure to protect against bank failure. (here)
Like everything else, compliance and risk management objectives can be turned into instruments of politics and well as policy, and in the process can be corrupted. The integrity of systems of risk and compliance based debanking becomes more problematic where the actions, especially closing accounts, is undertaken without explanation. (eg here)
In the UK, the convergence of these trajectories produced a controversy big enough to produce some additional transparency and rules " (here).
The legislation follows the high-profile debanking dispute between British politician Nigel Farage, who is now the leader of the Reform party, and Coutts in summer 2023 after Mr Farage announced his account was being closed and he was being targeted for his political views by Coutts and seven other banks which were refusing to allow him to open accounts. During the dispute, Mr Farage obtained a report from the bank, part of the NatWest group, which indicated his right-leaning political views had been considered in its decision to close his account. (Ibid).
The issue extended beyond politics, for example to small and medium sized business accounts (Debanking complaints surge in new figures published by Treasury Committee)
The issues appear in North America as well. In February 2025 Congressional hearings were held on "Investigating the Real Impacts of Debanking in America" (Background here, and here). On 7 August 2025 President Trump issues his Executive Order (Guaranteeing Fair Banking For All Americans), accompanied by a Factsheet, both of which appear below. The policy objective was straightforward:
It is the policy of the United States that no American should be denied access to financial services because of their constitutionally or statutorily protected beliefs, affiliations, or political views, and to ensure that politicized or unlawful debanking is not used as a tool to inhibit such beliefs, affiliations, or political views. Banking decisions must instead be made on the basis of individualized, objective, and risk-based analyses. (Guaranteeing Fair Banking For All Americans, §2)
The critical element was the definition of prohibited debanking:
The term “politicized or unlawful debanking” refers to an act by a bank, savings association, credit union, or other financial services provider to directly or indirectly adversely restrict access to, or adversely modify the conditions of, accounts, loans, or other banking products or financial services of any customer or potential customer on the basis of the customer’s or potential customer’s political or religious beliefs, or on the basis of the customer’s or potential customer’s lawful business activities that the financial service provider disagrees with or disfavors for political reasons. (Guaranteeing Fair Banking For All Americans, §3(a))
The operationalization of this project is extensive, requiring a substantial amount of compliance related work by both regulator bodies and institutions (Sections 4-5). It is likely to be challenged. But it also suggests the way that risk itself has become a substantial element in constriction of political tools. Risk based governance may itsef be both risky and corrupting. And in thus case, compliance will likely require reliance on tech based or rech enhanced programing. Stay tuned,
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Purpose. Financial institutions have engaged in unacceptable practices to restrict law-abiding individuals’ and businesses’ access to financial services on the basis of political or religious beliefs or lawful business activities. Some financial institutions participated in Government-directed surveillance programs targeting persons participating in activities and causes commonly associated with conservatism and the political right following the events that occurred at or near the United States Capitol on January 6, 2021. The Federal Government suggested that such institutions flag individuals who made transactions related to companies like “Cabela’s” and “Bass Pro Shop” or who made peer-to-peer payments that involved terms like “Trump” or “MAGA,” even though there was no specific evidence tying those individuals to criminal conduct.
Bank regulators have used supervisory scrutiny and other influence over regulated banks to direct or otherwise encourage politicized or unlawful debanking activities. “Operation Chokepoint,” for example, was a well-documented and systemic means by which Federal regulators pushed banks to minimize their involvement with individuals and companies engaged in lawful activities and industries disfavored by regulators based on factors other than individualized, objective, risk-based standards.
As a result, individuals, their businesses, and their families have been subjected to debanking on the basis of their political affiliations, religious beliefs or lawful business activities, and have suffered frozen payrolls, debt and crushing interest, and other significant harms to their livelihoods, reputations, and financial well-being. Such practices are incompatible with a free society and the principle that the provision of banking services should be based on material, measurable, and justifiable risks. Such practices, when wielded to discriminate against customers and businesses in credit transactions due to their religion, are also unlawful under the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.). They further undermine public trust in banking institutions and their regulators, discriminate against political beliefs and free expression of those beliefs, and weaponize a politicized regulatory state.
Sec. 2. Policy. It is the policy of the United States that no American should be denied access to financial services because of their constitutionally or statutorily protected beliefs, affiliations, or political views, and to ensure that politicized or unlawful debanking is not used as a tool to inhibit such beliefs, affiliations, or political views. Banking decisions must instead be made on the basis of individualized, objective, and risk-based analyses.
Sec. 3. Definitions. (a) The term “politicized or unlawful debanking” refers to an act by a bank, savings association, credit union, or other financial services provider to directly or indirectly adversely restrict access to, or adversely modify the conditions of, accounts, loans, or other banking products or financial services of any customer or potential customer on the basis of the customer’s or potential customer’s political or religious beliefs, or on the basis of the customer’s or potential customer’s lawful business activities that the financial service provider disagrees with or disfavors for political reasons.
(b) The term “Federal banking regulators” refers to the Small Business Administration (SBA) and the Federal member agencies of the Financial Stability Oversight Council with supervisory and regulatory authority over banks, savings associations, or credit unions.
Sec. 4. Removing Reputation Risk and Politicized or Unlawful Debanking. (a) Within 180 days of the date of this order, each appropriate Federal banking regulator shall, to the greatest extent permitted by law, remove the use of reputation risk or equivalent concepts that could result in politicized or unlawful debanking, as well as any other considerations that could be used to engage in such debanking, from their guidance documents, manuals, and other materials (other than existing regulations or other materials requiring notice-and-comment rulemaking) used to regulate or examine financial institutions over which they have jurisdiction. The removal of such concepts shall be made clear by each appropriate Federal banking regulator through formal guidance to their examiners. The Federal banking regulators shall also consider rescinding or amending existing regulations, consistent with applicable law, to eliminate or amend any regulations that could result in politicized or unlawful debanking and to ensure that any regulated firm’s or individual’s reputation is considered for regulatory, supervisory, banking, or enforcement purposes solely to the extent necessary to reach a reasonable and apolitical risk-based assessment.
(b) The SBA shall, within 60 days of the date of this order, give notice to all financial institutions with which it guarantees loans under its lending programs, requiring that each financial institution that is subject to the SBA’s jurisdiction and supervision:
(i) within 120 days of the date of this order, makes reasonable efforts to identify and reinstate any previous clients of the institution or any subsidiaries denied service through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act (15 U.S.C. 636) or any requirement in a Standard Operating Procedures Manual or Policy Notice related to a program or function of the Office of Capital Access, with notice of the reinstatement sent to the victim;
(ii) within 120 days of the date of this order, identifies all potential clients denied access to financial services provided by the financial institution or any subsidiaries through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act or any requirement in a Standard Operating Procedures Manual or Policy Notice related to a program or function of the Office of Capital Access, and provides notice to each victim advising of the denied access and the renewed option to engage in such services previously denied; and
(iii) within 120 days of the date of this order, identifies all potential clients denied access to payment processing services provided by the financial institution or any subsidiaries through a politicized or unlawful debanking action in violation of a statutory or regulatory requirement under section 7(a) of the Small Business Act or any requirement in a Standard Operating Procedures Manual or Policy Notice related to a program or function of the Office of Capital Access, and provides notice to each victim advising of the denied access and the renewed option to engage in such services previously denied.
Sec. 5. Scrutinizing Politicized or Unlawful Debanking. (a) Within 180 days of the date of this order, the Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, shall develop a comprehensive strategy for further measures to combat politicized or unlawful debanking activities of financial regulators and financial institutions across the Federal Government, including consideration of legislative or regulatory options to eliminate such debanking.
(b) Within 120 days of the date of this order, each Federal banking regulator shall conduct a review to identify financial institutions subject to its jurisdiction that have had any past or current, formal or informal, policies or practices that require, encourage, or otherwise influence such financial institution to engage in politicized or unlawful debanking and to take appropriate remedial action, to the extent authorized and consistent with applicable law, including levying fines, issuing consent decrees, or imposing other disciplinary measures against any financial institution subject to the jurisdiction of such Federal banking regulator that such Federal banking regulator finds has engaged in politicized or unlawful debanking that violates applicable law (including section 5 of the Federal Trade Commission Act (15 U.S.C. 45), section 1031 of the Consumer Financial Protection Act (12 U.S.C. 5531), and the Equal Credit Opportunity Act).
(c) Within 180 days of the date of this order, the Federal banking regulators shall review their current supervisory and complaint data to identify any financial institution that has engaged in unlawful debanking on the basis of religion and, if such financial institution is unable to obtain compliance within the meaning of 15 U.S.C. 1691 and 1691e(g), refer such matters to the Attorney General for an appropriate civil action, as appropriate.
Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Small Business Administration.
DONALD J. TRUMP
THE WHITE HOUSE,
August 7, 2025.
PROHIBITING POLITICIZED OR UNLAWFUL DEBANKING: Today, President Donald J. Trump signed an Executive Order to ensure that Federal regulators do not promote policies and practices that allow financial institutions to deny or restrict services based on political beliefs, religious beliefs, or lawful business activities, ensuring fair access to banking for all Americans.
- The Order directs Federal banking regulators to remove reputational risk and other equivalent concepts that enable politicized or unlawful debanking from their guidance, examination manuals and other materials.
- The Order instructs the Small Business Administration to require all financial institutions subject to its jurisdiction to make reasonable efforts to reinstate clients and potential clients previously denied services due to unlawful debanking.
- The Order directs the Secretary of the Treasury, in consultation with the Assistant to the President for Economic Policy, to develop a comprehensive strategy to further combat politicized or unlawful debanking activities, including potential legislative or regulatory solutions.
- The Order requires Federal banking regulators to review financial institutions for past or current policies encouraging politicized or unlawful debanking and take remedial actions, including fines or consent decrees.
- The Order further requires Federal banking regulators to review supervisory and complaint data for instances of unlawful debanking based on religion and refer such cases to the Attorney General.
ADDRESSING UNFAIR BANKING PRACTICES: President Trump believes that no American should be denied access to financial services because of their political or religious beliefs, and that banking decisions must solely be made on the basis of individualized, objective, and risk-based analyses.
- This Order responds to the systemic abuses by financial institutions that undermine free expression and economic opportunity. Individuals and businesses that are debanked cannot hold a bank account, process everyday transactions, or participate fully in our economy.
- One major banking institution denied ticket-payment processing services for a Republican event, reversing the decision only after it received public attention.
- Federal regulators encouraged banks to flag individuals for transactions with companies like Bass Pro Shop or Cabela’s, or for using terms like “Trump” or “MAGA” in peer-to-peer payments, without evidence of criminal activity.
- President Trump has stated that two major banks even denied his own business.
- Earlier this year, the Senate Banking Committee held a hearing on this issue, with witnesses sharing their own firsthand experiences of being debanked.
- Operation Chokepoint, a well-documented Federal debanking initiative, targeted lawful industries for political reasons.
- The digital assets industry has also been the target of unfair debanking initiatives.
- These practices erode public trust in banking institutions and regulators, harm livelihoods, freeze payrolls, and impose significant financial burdens on law-abiding Americans.
UPHOLDING ECONOMIC FREEDOM: President Trump is committed to protecting Americans’ constitutional rights and reducing regulatory overreach that stifles American businesses and individuals.
- President Trump has expressed that the banks “discriminate against many conservatives,” including himself.
- President Trump: “The banks discriminate against conservatives, they discriminate against religion, because they’re afraid of the radical left, I suspect. I think the bank regulators are doing a big number of the banks because they’re not allowed to do business with you. And we’re going to get those banks when we get in office. We’re going to get them. Nobody knows the banking industry better than me, and I’m not going to let them take advantage of you any longer. They’ve taken advantage and what they do to the people in this room, and by the way, millions and millions of others, is a disgrace. We’re going to end it.”
- The Trump Administration has already ended Operation Chokepoint 2.0 once and for all by working to end regulatory efforts that deny banking services to the digital assets industry.
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