Citi announced Tuesday that it will update its policies to ensure clients can access the firm’s financial services despite their political views or involvement in the firearms industry.
The bank’s decision comes following actions by the Trump administration to counter alleged “debanking” of conservatives, crypto firms and other businesses such as firearms dealers who have lost access to financial services because of their views or their connection to disfavored industries.
“Citi has always been fully committed to treating all current and potential clients fairly and we have policies, procedures and controls in place for this express purpose,” Edward Skyler, head of enterprise services and public affairs at Citi, wrote in a post. “At the same time, we appreciate the concerns that are being raised regarding ‘fair access’ to banking services, and we are following regulatory developments, recent Executive Orders and federal legislation that impact this area.”
“In light of those developments, we took an objective look at our policies and practices with the intent of striking the right balance between our commitment to fair and unbiased access to our products while continuing to manage all risks to the bank appropriately,” he explained.
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“We will update our employee Code of Conduct and our customer-facing Global Financial Access Policy to clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits such as race and religion,” Citi said.
“This will codify what we’ve long practiced, and we will continue to conduct trainings to ensure compliance.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| C | CITIGROUP INC. | 75.80 | +0.48 | +0.64% |
Citi’s announcement also addressed its previous policy on firearms, which it explained was a means of ensuring retailers follow best practices in terms of selling guns.
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“We also will no longer have a specific policy as it relates to firearms. Our U.S. Commercial Firearms Policy was implemented in 2018 and pertained to the sale of firearms by our retail clients and partners,” Citi said.
“The policy was intended to promote the adoption of best sales practices as prudent risk management and didn’t address the manufacturing of firearms,” Skyler wrote. “Many retailers have been following these best practices, and we hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence.”
TIM SCOTT INTRODUCES SENATE BILL TO ADDRESS DEBANKING OVER ‘REPUTATIONAL RISK’
Congress is weighing legislation that would prevent financial institutions from debanking clients over purported “reputational risk” from disfavored industries.
Senate Banking Committee Chair Tim Scott, R-S.C., introduced the Financial Integrity and Regulation Management (FIRM) Act in March. The bill would eliminate references to reputational risk as a measure used by regulators to determine the safety and soundness of a financial institution.
The legislation would also eliminate the ability of federal banking agencies to move forward with new rules or guidance using reputational risk to regulate financial institutions and require those agencies to report to Congress their elimination of reputational risk in bank oversight.
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