Citigroup is scrapping a pro-gun-safety policy and updating certain policies to bar discrimination based on political affiliation — moves that come as conservative groups flex their power in Washington, D.C.
The megabank, which established firearms sales restrictions for its business clients in 2018, told its employees in an internal memo Tuesday that it will “no longer have a specific policy as it relates to firearms.” Citi set the policy in the wake of the mass shooting at Marjory Stoneman Douglas High School in Parkland, Fla., where 17 students and staff members were killed.
Citi will also update both its employee code of conduct and its customer-facing global financial access policy “to clearly state that we do not discriminate on the basis of political affiliation in the same way we are clear that we do not discriminate on the basis of other traits, such as race and religion,” according to the memo from Edward Skyler, Citi’s head of enterprise services and public affairs.
The latter move will codify what the company has “long practiced,” Skyler wrote.
The changes come amid mounting pressure from the Trump administration and conservative groups, which have accused banks of dropping customers based on their conservative political views. So-called “debanking” has become a hot-button issue in recent months.
In February, Sen. Kevin Cramer, R-N.D., and a member of the Senate Banking Committee, reintroduced legislation that would penalize banks and credit unions with more than $10 billion of assets “if they refuse to do business with any legally compliant, credit-worthy person,” according to a press release from Cramer’s office.
The Senate bill would also prevent payment card networks from discriminating against qualified customers due to political or reputational considerations. Those who fail to comply with the proposed law would be subject to fines up to $10,000 per violation. Similar legislation has been introduced in the House by Rep. Andy Barr, R-Ky.
“We appreciate the concerns that are being raised regarding ‘fair access’ to banking services, and we are following regulatory developments, recent executive orders and federal legislation that impact this area,” Citi’s Skyler wrote. As a result, the bank “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.”
“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,” wrote Skyler, who helped craft the 2018 policy, the first of its kind among large banks.
Reaction to Citi’s changes was mixed. The Second Amendment Foundation, a nonprofit organization that supports gun rights, took the opportunity to criticize Citi’s 2018 firearms sales policy while also sending a warning shot to other banks.
“Citi admits that the legislative and regulatory zeitgeist has shifted, and so it has now made the ‘brave’ decision to align with the current administration and abandon this policy,’ Bill Sack, the group’s director of legal operations, said in a statement. “Second Amendment Foundation welcomes this change, while reminding Citi and the rest of the banking industry that both [the foundation] and the American people will keep a vigilant eye on them moving forward.”
Everytown for Gun Safety, which bills itself as the largest gun violence prevention organization in the country, expressed disappointment about Citi’s decision.
“The actions Citi announced in 2018 were common-sense steps to promote public safety,” Nick Suplina, the group’s senior vice president for law and policy, said in a statement. “With firearms as the leading cause of death for children and teens, the logic of 2018 is just as relevant today.”
Citi’s seven-year-old firearms sales policy barred the bank’s business clients from selling guns to anyone who didn’t pass a background check or to anyone under the age of 21. It also stated that they could not sell bump stocks or high-capacity magazines.
In the memo announcing the firearms policy’s implementation, the bank said the policy “was not centered on an ideological mission to rid the world of firearms.” Rather, it was an attempt by CIti to do its part as a company “to prevent firearms from getting into the wrong hands.”
The policy required new retail-sector clients and partners, including small business, commercial and institutional clients, as well as credit-card partners, to adhere to a set of “best practices” when selling firearms. It did not address the manufacturing of firearms.
Skyler stated in his memo Tuesday that “many retailers have been following these best practices.”
“We hope communities and lawmakers will continue to seek out ways to prevent the tragic consequences of gun violence,” he wrote.
