The Office of the Secretary of the Currency (OCC) shared significant news on Monday, September 8, that aims to “depoliticize banks” and tackle “illegal de-pasting” within the federal banking system.
One key update focused on licensing, stating that the OCC is reviewing how banks consider licensing decisions and their evaluations under the Community Reinvestment Act (CRA). This is part of their effort to address any potential political influences in these processes.
The second announcement emphasized the need for financial institutions to protect consumer financial records and suspicious activity reports, urging banks to remain vigilant against any illegal practices.
Jonathan V. Gould, the director of the OCC, commented on these measures, asserting that the agency is committed to ending the misuse of the financial system. He stressed the importance of preventing discriminatory practices against customers based on their political or religious beliefs, or even their business activities.
These announcements align with President Trump’s recent executive order titled “Ensuring Fair Banking for All Americans.” The OCC highlighted that it would be enhancing its testing protocols by examining consumer complaints and reassessing its approach to anti-money laundering supervision to ensure compliance.
In conjunction with the executive order, federal bank regulators were instructed to eliminate any references to reputational risks that could lead to unjust practices. This includes a thorough review of financial institutions for any potentially discriminatory policies and ensuring corrective actions are taken when necessary.
The fact sheet released by the White House affirmed that President Trump advocates for fair access to financial services, asserting that banking decisions should rely solely on objective risk analyses rather than political or religious considerations.
Back in March, the OCC announced it would no longer factor reputational risk into its assessments and had removed all related references from official guidance documents.
