Arlington, VA – A coalition of free-market and consumer advocacy organizations is calling on Congress to take immediate action against government-led efforts to pressure financial institutions into closing customer accounts. Recent revelations show that the Biden Administration has engaged in regulatory overreach to push financial institutions into debanking certain industries, such as cryptocurrency firms—an alarming continuation of the Obama-era Operation Choke Point.
Key Takeaways:
- Regulatory Overreach is Silencing Lawful Businesses
- Government bureaucrats are pressuring banks to cut off services to entire industries, such as cryptocurrency and firearms.
- This mirrors Operation Choke Point, which unfairly targeted lawful businesses under the guise of risk management.
- The Bank Secrecy Act is Burdensome
- Financial institutions are forced to file millions of Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs), the majority of which are never even used in law enforcement investigations.
- Banks risk massive fines if they do not aggressively debank accounts flagged in these reports, even when no crime has been committed.
- Congress Must Rein in Rogue Regulators
- The Anti-Money Laundering Act of 2020 should be fully implemented to focus efforts on actual criminals rather than burdensome reporting.
- Congress must take decisive action to prevent financial regulators from acting as ideological enforcers that limit Americans’ ability to participate in the economy.
The weaponization of financial regulation is an abuse of power that, if left unchecked, will extend beyond targeted industries to any individual or business that falls out of favor with those in power. Congress should act now to stop this growing threat, protect economic freedom, and ensure that financial access is not determined by politics.
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