On Tuesday, Citigroup announced the termination of a seven-year-old policy that restricted its banking services to firearm manufacturers, sellers, and resellers. This significant policy shift comes after the bank initially implemented the restrictions in March 2018, following the tragic mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, where a teenage gunman killed 17 individuals and injured many others.
When the policy was first launched, Citi aimed to enforce best practices among its business clients, which included requirements that prohibited selling firearms to individuals who had not passed background checks, restricted sales to those under 21 years of age, and banned the sale of bump stocks and high-capacity magazines. The policy applied exclusively to Citi's business clients, encompassing a wide range of enterprises from small businesses to Fortune 500 companies, while personal banking customers were not affected.
Ed Skyler, Citigroup's Executive Vice President of Enterprise Services and Public Affairs, emphasized the need for change in a blog post on Tuesday. He stated that the original policy was established to promote prudent risk management and best sales practices, rather than addressing the manufacturing of firearms directly. Skyler noted that many retailers have since adopted these best practices, and he expressed hope that communities and lawmakers will continue to seek solutions to mitigate the devastating effects of gun violence.
The decision to lift the policy drew sharp criticism from gun-control advocacy groups. March for Our Lives, an organization founded by survivors of the Parkland shooting, condemned Citi's move. Executive Director Jackie Corin expressed her dismay, stating, "Citi just chose appeasing Donald Trump over protecting the lives of kids." Corin recalled how, seven years ago, Citi had the courage to say "no more" to financing gun sales to teenagers, contrasting it with the current decision that she claims prioritizes politics over children's safety.
This policy change at Citigroup occurs within a larger political landscape where accusations of "debanking" have emerged. Influential tech leaders and right-wing officials have alleged that the Biden administration has improperly blocked certain individuals, such as cryptocurrency advocates and conservatives, from accessing banking services. This narrative gained traction when former President Donald Trump confronted the CEOs of major banks, including Bank of America and JPMorgan Chase, at the World Economic Forum in Davos earlier this year regarding similar complaints. Both banks asserted their commitment to welcome clients from all political affiliations, stating they would not close accounts for political reasons.
In light of the recent changes, Citigroup stated that it would revise its employee Code of Conduct and customer-facing Global Financial Access Policy to explicitly affirm that the bank does not discriminate based on political affiliation, similar to its existing policies regarding race and religion. This update aims to codify Citi's long-standing practices, reinforcing its commitment to inclusivity and compliance. Banking executives have reiterated that banking services are only terminated due to violations of anti-money laundering laws or know-your-customer regulations, not based on political views.
