Fifteen Republican attorneys general sent a letter to Bank of America CEO Brian Moynihan this week accusing the lender of “de-banking” certain individuals for their religious or political identities.
“Surely Bank of America would not say that denying service to clients for exercising their civil liberties is doing ‘business the right way for [its] customers,’” wrote Kansas Attorney General Kris Kobach in the Monday letter.
“Your discriminatory behavior is a serious threat to free speech and religious freedom, is potentially illegal, and is causing political and regulatory backlash. Your bank needs to be transparent with and assure us, its shareholders, and others that it will not continue to de-bank customers for their speech or religious exercise,” Kobach wrote.
A Bank of America spokesperson denied the allegations set forth in Kobach’s letter.
“Given the large number of non-profits we serve that are affiliated with religious organizations, it’s absurd to think religious beliefs are a factor in any account closing decision. Very simply, they are not,” the spokesperson wrote in an email to Banking Dive.
“Same applies re: conservatives,” the spokesperson wrote. “[P]olitical viewpoints are not a factor in any account closing decision.”
Kobach’s letter comes after the House Judiciary Committee’s Select Subcommittee on the Weaponization of the Federal Government in January said it obtained documents indicating that following Jan. 6, 2021, the Financial Crimes Enforcement Network communicated to banks that they should comb through customer transactions for “suspicious charges” that included firearms, religious texts and words like “MAGA” and “Trump.”
Kobach’s letter contended Bank of America “willingly participated” in financial surveillance based on “innocuous information,” including if someone shopped at “outdoor stores … or associated with groups ... which champion mainstream views on free speech, religious freedom, and life — to tar ordinary Americans as potential domestic terrorists.”
Kobach was joined in signing the letter by the attorneys general of Mississippi, Idaho, Iowa, Alabama, Utah, Texas, Montana, Virginia, Arkansas, South Carolina, South Dakota, Indiana, Missouri and Nebraska.
The AGs allege Bank of America has a track record of de-banking “religious groups with mainstream views.”
“Financial institutions set the stage for politicized de-banking by adopting vague and subjective ‘reputational risk’ policies and prohibitions on ‘hate’ that are susceptible to abuse. According to the 2023 Viewpoint Diversity Score Business Index, which measures corporate respect for free speech and religious liberty, nearly half of the largest finance companies include these kinds of problematic terms. Even worse, seven of the top ten largest banks and each of the top three banks, including Bank of America, have these policies,” the attorneys general wrote.
“These policies’ overly broad and subjective language permit employees to discriminate based on a customer’s viewpoint, instead of sound financial factors, and then hide their discrimination behind those opaque standards,” they wrote.
The Viewpoint Diversity Score Business Index they referenced is operated by the Alliance Defending Freedom, an American conservative Christian legal advocacy group.
Within 30 days, the attorneys general are asking Moynihan to provide a report on Bank of America’s account-cancellation policies and practices, “particularly regarding ‘risk tolerance,’ ‘reputational risk,’ ‘hate,’ ‘intolerance,’ and similar terms, and whether Bank of America considers a customer’s speech or religious exercise — or public perception or other groups’ perception of them — as a component of those policies.”
The AGs also asked the bank to update its terms of service to include that it doesn’t discriminate against customers for religious or political views, to support shareholder proposals protecting religious and political diversity and to participate in the Viewpoint Diversity Score Business Index.
