The US Office of the Comptroller of the Currency (OCC) has issued guidance clarifying how it will consider alleged politicised or unlawful “debanking” in banks’ licensing applications and Community Reinvestment Act (CRA) performance, following an executive order signed in August by President Donald Trump.

In a bulletin, the OCC said it will review banks’ records and policies designed to avoid restricting services on the basis of political or religious beliefs, or lawful business activities, when weighing filings such as new charters, mergers, branching and changes in control. It added that CRA examinations may factor in whether an insured bank has engaged in such practices, tailored to the size, complexity and risk profile of the institution. The OCC also signalled forthcoming updates to its Licensing Manual, CRA procedures and relevant regulations.

Comptroller of the currency Jonathan Gould said the agency is targeting the “weaponization” of financial services. “Individuals may have been targeted and surveilled based on where they shop or what they believe in and, in some cases, unlawfully debanked,” he said, describing the push as an effort to stop that trend.

Gould added that “the OCC is taking steps to end the weaponization of the financial system,” framing the initiative as part of a wider effort to root out discrimination based on political or religious beliefs.

The OCC’s move follows calls from industry groups and Republican lawmakers to curb perceived debanking, a term used to describe the withdrawal of services from individuals or sectors considered politically sensitive. Consumer advocates, however, say there is little evidence of a widespread problem. A Reuters analysis reported that few consumers have lodged debanking complaints in recent years.

Alongside the licensing and CRA guidance, the OCC said it is examining revisions to supervision related to anti-money laundering, has requested information from its largest supervised banks on any debanking activities, and is preparing a rule to remove references to reputation risk from regulations. It also issued a separate memo reminding firms of the limited circumstances under which customer financial records can be shared and the proper use of suspicious activity reports.

Trump’s executive order directs regulators to identify institutions that engaged in unlawful debanking and to remove reputation risk standards from guidance. Other US bank watchdogs, including the Federal Reserve and the Federal Deposit Insurance Corporation, are also updating supervision practices to address the issue.

Debanking has been a politically charged topic on both sides of the Atlantic since 2023, when far-right politician Nigel Farage said his accounts at Coutts were closed following an internal review of his reputational impact on the bank’s business. The episode prompted regulatory scrutiny, apologies from the bank’s leadership and governance changes at parent group NatWest. The broader debate has focused on transparency around account closures and the balance between risk management and fair access to services.

In the US, Trump has alleged that large banks refused to accept his deposits on political grounds. Reuters reported that he cited JPMorgan and Bank of America in those claims, which the banks did not substantiate, with JPMorgan stating it does not close accounts for political reasons.

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