WASHINGTON (dpa-AFX) - President Donald Trump has 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 Presidential Order also 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.
President Trump issued this Order in response to the systemic abuses by financial institutions that undermine free expression and economic opportunity, according to the White House.
It noted that one major banking institution denied ticket-payment processing services for a Republican event, reversing the decision only after it received public attention.
Individuals and businesses that are debanked cannot hold a bank account or process everyday transactions.
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