Debanking customers based on political ideology and “reputation risk” while missing billions in suspicious activity and alleged financial crimes – several of America’s mega banks have a lot to answer for.
This week, the Office of the Comptroller of the Currency (OCC) released findings that ignited the national debate of debanking, again, and customer profiling. Americans across the full political spectrum have raised concerns that some of our nation’s largest banks have used subjective “reputational risk” standards to scrutinize or deny service to lawful customers based on beliefs, affiliations, or perceived political views.
Meanwhile, several of the same institutions that have spent years policing the personal and political lives of customers are now facing scrutiny for massive failures involving financial crimes.
The latest banking enforcement actions raise an important question: Who is held accountable when financial institutions fail to protect the American financial system?
For years, Americans have been told to trust the institutions that hold their money. But when serious compliance failures occur at some of the nation’s largest banks, the consequences can extend far beyond a bank’s bottom line.
Recent enforcement actions against Bank of America have brought that issue back into focus. On October 13, 2026, the U.S. Department of the Treasury announced more than $1.21 billion in penalties against the bank for violations involving anti-money laundering and sanctions requirements, including what Treasury has described as “the third-largest penalty in Treasury history, and the largest penalty ever issued by the OCC. Regulators cited violations of the Bank Secrecy Act, including failures to identify, investigate, and report suspicious financial activity, including transactions associated with Chinese money-laundering networks and illicit finance along the southwestern border. In total, more than $5 billion in suspicious transactions were identified. Treasury further stated that over $1 billion of the unreported activity implicated national security and other priority illicit finance risk. Source: U.S. Treasury Department
According to Treasury, Bank of America “prioritized its revenues” while minimizing compliance resources and relied heavily on outside referrals and law enforcement inquiries rather than effective internal monitoring controls.
Think about that for a moment.
Banks that claim extraordinary authority to judge the reputations, associations, and viewpoints of law-abiding customers allegedly failed to identify and report billions of dollars in suspicious, possibly illegal, financial activity.
Let’s review one more time for the people in the back: Banks accused of monitoring and reporting to the government on lawful consumer behavior and customer affiliations failed to meet their most fundamental obligation: detecting actual financial crimes.
For Everett Stern, an HSBC whistleblower who says he sacrificed his career to expose financial misconduct, the announcement raises a familiar concern: Are financial penalties enough to change the behavior of powerful institutions?
In an open letter to Treasury Secretary Scott Bessent posted on X, Stern called for greater individual accountability for the people responsible for serious compliance failures. His argument is straightforward: When the consequences fall primarily on institutions, rather than the individuals responsible for their decisions, the incentives to change may not be strong enough.
It is a question Americans should be asking.
Stern’s concerns are informed by his own experience at HSBC. In 2012, HSBC agreed to forfeit $1.256 billion and pay additional civil penalties as part of a total settlement of approximately $1.92 billion over anti-money laundering and sanctions violations. The bank admitted to serious compliance failures and entered into a deferred prosecution agreement with the U.S. Department of Justice. Source: U.S. Department of Justice
Stern has described the personal and professional consequences he faced after reporting concerns about financial crime. His experience highlights a difficult reality: Speaking up about misconduct can carry substantial personal risks, even when the concerns ultimately lead to major enforcement actions.
The broader issue is not whether banks should follow anti-money laundering laws. They must. Strong safeguards against money laundering, terrorist financing, fraud, and sanctions violations are essential to protecting Americans and the integrity of the financial system.
If massive institutions cannot effectively stop money laundering, sanctions violations, and suspicious financial activity occurring on their watch, why should Americans trust them to make subjective judgments about lawful customers’ beliefs, organizations, religious affiliations, or political stances?
An equally important question is whether regulatory enforcement consistently holds the right people accountable, and whether institutions are doing enough to address problems before they become national security concerns.
When compliance failures persist, the public deserves answers, meaningful corrective action, and accountability proportionate to the conduct involved. Americans deserve the freedom to choose a bank that doesn’t gatekeep their participation in the national financial system while opening the door to criminals, foreign or otherwise.
Old Glory Bank was founded in response to growing concerns about financial privacy, debanking, and the power financial institutions can exercise over individuals and businesses.
Our co-founders saw the writing on the wall years ago, before the government and media acknowledged debanking, or even cared. Now it’s front and center on the American radar, and our dedication to our mission is stronger than ever.
We believe Americans should be able to manage their money without worrying that their lawful beliefs or viewpoints will unfairly jeopardize their access to essential financial services. Responsible banking requires both effective compliance and a commitment to treating customers fairly.
It means that protecting the financial system and respecting the people who depend on it should go hand in hand. It means honoring our Constitution, respecting our military and first responders, and loyalty to our nation’s foundational values.
As an online bank serving customers nationwide, Old Glory Bank is committed to providing modern banking services with old-fashioned American service. Our mission is rooted in the belief that financial freedom matters, and that customers deserve a banking relationship they can actually trust.
Americans should not have to choose between a secure financial system and fair treatment by their bank.
Financial institutions must be held to meaningful standards. Compliance failures should be addressed, corrective measures should be implemented, and individuals responsible for misconduct should face appropriate consequences when warranted.
At the same time, America’s free market offers stronger protection than any regulatory agency ever can. Fines don’t change ideologies when they don’t make a dent in the vault. Laws never change ideology. Choice is the only true fortress of freedom. Citizens must have the right to choose which bank gets their deposits according to their preferences and values.
These principles should not depend on which political party holds power. Financial privacy, responsible oversight, and fair access to banking are issues that affect Americans across the country.
The standard should be consistent. The accountability should be meaningful. And the customer’s right to choose should never be overlooked.
The debate over banking accountability is about more than penalties and regulatory headlines. It is about the kind of financial system Americans want, and the standards they should expect from the institutions entrusted with their money.
Old Glory Bank was founded to give Americans another choice: a nationwide online bank grounded in Privacy, Security, and Liberty.
Ready to bank like an independent American? Discover Old Glory Bank and explore our personal and business banking options at OldGloryBank.com.
U.S. Treasury: Record Enforcement Actions Against Bank of America
CNBC: Bank of America fined $1.2 billion over money laundering violations
US hits Bank of America with $1.2 billion fine, saying it violated money laundering, sanctions laws
https://x.com/seamusbruner/status/2111128143733948683
Old Glory Bank is a financial institution committed to responsible banking and compliance with applicable laws and regulations. This article discusses public reporting and regulatory actions and is not intended to suggest that every large financial institution operates in the same way.
