Bank Account Protection: New Rules for Closures and Subpoenas
This act introduces new rules for financial institutions closing customer accounts at the request of federal agencies. It aims to protect customers from unjustified account terminations by requiring agencies to provide a material reason, not solely based on reputation risk. The act also increases transparency in the account closure process, with exceptions for national security concerns.
Key points
Banks cannot close accounts at federal agency request without a specific, material reason, not just reputation risk.
Federal agencies must provide written justification for account termination requests, citing specific laws violated, unless national security is involved.
Customers whose accounts are closed will receive a justification, unless the case involves national security, terrorism, or sanctioned countries.
The act modifies subpoena rules in financial matters, requiring a court order or a high-ranking prosecutor's signature.
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