Debanking was prevalent during the Biden Administration. In effect, certain individuals and businesses were “debanked” because they were deemed to be in an undesirable line of business or were affiliated with entities viewed as not aligned with administration goals. This does not include criminal or illicit activities. Frequently, this aligned with crypto or digital asset firms that were considered disfavored.
Removing an individual or firm’s ability to hold an account makes it incredibly difficult to accept or disburse funds. Debanking is a nefarious and punitive act by the institution.
The Trump Administration issued an Executive Order last year that sought to ban debanking by financial firms. Legislation was already in the works before the EO was issued. Meanwhile, there are claims of ongoing discriminatory practices by banks.
The Office of the Comptroller of the Currency (OCC), one of the banking sector regulators, has now created a path for individuals who are victims of debanking.
The online complaint allows victims or their legal representatives to file the necessary documents for the OCC to commence an investigation, potentially. The OCC also allows “whistleblowers” to report concerns about a bank’s operations, including debanking.