Banking giant Citigroup has reversed its policy of discriminating against members of the firearms and ammunition industry and once again will open banking services to this manufacturing, wholesale, and retailer segment.
Edward Skyler, head of Citibank’s enterprise services and public affairs, said in a June 3 statement, “We will no longer have a specific policy as it relates to firearms. Our U.S. Commercial Firearms Policy was implemented in 2018 and pertained to sale of firearms by our retail clients and partners. The policy was intended to promote the adoption of best sales practices as prudent risk management and didn’t address the manufacturing of firearms. 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.”
“This has been a hard-fought battle to ensure the firearm industry has access to the financial services necessary to compete in today’s market,” said Lawrence G. Keane, National Shooting Sports Foundation’s senior vice president and general counsel.
Keane added that while the announcement was welcome, the proof will be realized when members of the firearm industry are once again able to access financial services through Citigroup.
“We are grateful that Citigroup’s leadership recognized that no one wants to promote safe and responsible firearm ownership more than those of us within the firearm industry” Keene said. “We are encouraged by the decision for Citigroup to resume providing financial services to members of our industry and the opportunity to work together to promote real solutions for safer communities, while respecting the rights of law-abiding citizens.
“We will see if this is a substantive change in policy or just a superficial change while Citigroup continues to discriminate in private beyond closed doors where it is harder for the public to detect.”
It could be that passage of Firearm Industry Nondiscrimination (FIND) Act legislation in 11 states prodded the financial giant to act. FIND Act rules prohibit state agencies and local government entities from entering into contracts with corporations that discriminate against the firearm industry. Citigroup was found to be in violation of the Texas FIND Act, enacted in 2021, and the bank was barred from competing to underwrite $3.4 billion in state bonds.
According to NSSF, other corporate banks that have used discriminatory practices against firearms-segment businesses include Bank of America, J.P. Morgan Chase, and Wells Fargo. Federal legislation similar to the state-level FIND Acts is pending in Congress.
Another set of federal rules called the Fair Access to Banking Act would stop corporate banks from picking winners and losers based on executives’ personal politics. The legislation also protects banks from outside pressure by special-interest groups seeking to use the banks as a weapon to advance their political agendas.
