OCC Bulletins Signal Heightened Scrutiny of Debanking Practices

In a recent analysis, Alan S. Kaplinsky of Ballard Spahr outlines how the Office of the Comptroller of the Currency (OCC) has issued two bulletins clarifying its approach to debanking. 

The first bulletin links debanking considerations to licensing activities, including charter applications, branch approvals, fiduciary powers, and business combinations. The OCC also confirmed that debanking practices factor into Community Reinvestment Act (CRA) reviews, with the agency weighing past records and current policies to avoid politicized or unlawful debanking. Evaluation will be scaled according to a bank’s size, complexity, and risk profile.

The second bulletin reminds institutions of the narrow conditions under which customer financial records can be released and underscores the correct use of suspicious activity reports. The OCC also announced that it is reviewing its Bank Secrecy Act and anti-money laundering supervision to confirm that these processes are not unintentionally contributing to the practice of debanking.

Parallel to the OCC’s actions, President Trump signed an August 7 Executive Order titled “Guaranteeing Fair Banking for All Americans.” The order prohibits institutions from denying services based on an individual’s political or religious views, sexual orientation, or lawful participation in a particular industry. It further requires agencies to bar reputational risk as a justification for restricting access to banking. Reflecting this mandate, the OCC has already removed reputational risk from its guidance and is preparing a rule to delete references from regulations.

For compliance officers, Kaplinsky’s account highlights growing regulatory scrutiny. Institutions should review governance, customer record handling, and CRA compliance to align with this evolving oversight and reduce exposure to debanking-related risk.