OCC Distances Itself from Operation Chokepoint

The Office of the Comptroller of the Currency’s (OCC) acting director, Keith Norieka, informed House Financial Services Committee Chairman Rep. Jeb Hensarling (R- TX) on August 18th that the OCC was never involved in Operation Chokepoint (OCP), a federal policy that encouraged banks to cut ties with “high risk” businesses. The Department of Justice officially ended the practice last week, concluding a program that targeted small dollar lenders, gun shops, and other businesses the federal government felt were at a greater risk of fraud and money laundering. In his letter, Comptroller Norieka noted that, “the OCC is not now, nor has it ever been a part of Operation Chokepoint. […] The agency rejects the targeting of any business operating within state and federal law as well as any intimidation of regulated financial institutions into banking or denying banking services to particular businesses.”

The OCC, along with the Federal Reserve and Federal Deposit Insurance Corporation, are currently embroiled in a lawsuit with the Community Financial Services Association over the impact of OCP on small dollar lending. Rep. Blaine Luetkemeyer (R- MO) had previously introduced a bill called the Financial Institution Customer Protection Act of 2017 seeking to end OCP. The federal policy raised significant tribal sovereignty and economic development concerns when pursued.