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Citigroup announced Tuesday it is dropping a 2018 policy that placed restrictions on offering banking services to retail clients selling firearms and amending a separate policy to clearly state that it does not discriminate based on political affiliation.
The changes come amid concerns over “fair access” to banking services, Citi’s Head of Enterprise Services and Public Affairs Edward Skyler said in a press release, noting that the company is following regulatory developments, recent executive orders and legislation on Capitol Hill.
“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,” Skyler said. “As a result of that analysis, we are taking several actions.”
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Citigroup said it was dropping a 2018 policy that placed restrictions on offering banking services to retail clients selling firearms. (REUTERS/Chris Helgren / Reuters Photos)
Since President Donald Trump returned to the White House in January, U.S. banks and regulators have come under scrutiny from federal lawmakers over allegations of denying services to certain industries or political groups.
The banking industry has pushed back on the accusations, arguing that onerous, outdated and opaque rules make it difficult for them at times to offer services or give a justification for denying a potential client.
Citi said it is removing its U.S. Commercial Firearms Policy that was implemented in 2018 to restrict services to retail clients and partners selling firearms. It 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.”
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The logo of Citigroup Inc. at the entrance to the bank’s office in Paris, France, on Monday, Feb. 27, 2023. (Benjamin Girette/Bloomberg via Getty Images / Getty Images)
“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,” the company said in the release.
The company also said it is updating its employee Code of Conduct and customer-facing Global Financial Access Policy to “clearly state” that it does not discriminate on the basis of political affiliation in the same way it is clear that it does not discriminate on the basis of other traits, including race and religion.
“This will codify what we’ve long practiced, and we will continue to conduct trainings to ensure compliance,” the release said.
Citigroup’s CEO announced revisions to its diversity, equity and inclusion hiring practices in a Thursday memo. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
“These changes reinforce our commitment to serve all clients fairly, and we will continue to work with regulators and elected officials on ways to improve transparency and trust in the banking sector,” it concluded.
The moves come after Republican-led states pushed legislation to discourage perceived discrimination by banks. Varying laws aimed at ensuring banks lend fairly has led to frustration in the industry.
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In January, Trump accused the CEOs of Bank of America and JPMorgan Chase of denying services to some conservatives, although banks have rejected allegations that they deny services on political grounds.
Reuters contributed to this report.
