Several years after major bankers put onerous restrictions on firearms sellers, essentially cutting many off from financial services, Citigroup reversed course this week, claiming most in the gun industry are playing by its rules.
In a statement, Citigroup spokesman Edward Skyler 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. 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 elimination of gun-focused rules from its banking policies comes seven years after Citigroup and several other banks placed restrictions on their clients that sold firearms following the 2018 mass school shooting in Parkland, Florida.
The firearms industry, which has fought the restrictions, offered cautious praise to Citigroup on Tuesday and Wednesday.
“Trust, but verify,” said the National Shooting Sports Foundation, the industry trade group.
“We are guardedly optimistic,” said NSSF’s Lawrence Keane, senior vice president and general counsel. “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.”
The National Rifle Association called it “a great first step” but pledged to continue pushing for national legislation that would block banks from discriminating against gun sellers.
“The NRA welcomes the news that Citigroup has rescinded its discriminatory debanking policies targeting gun manufacturers and dealers. Citigroup and other banks were pressured by left-wing activists to implement these measures in an attempt to restrict the lawful sale of firearms,” said chief NRA lobbyist John Commerford, executive director of the group’s Institute for Legislative Action.
Several big banks responded to the Parkland shooting by placing restrictions on gun sellers that many decried as discriminatory.
Citigroup, for example, banned its services from businesses that sold firearms to those under 21 or didn’t pass a background check. It also wouldn’t work with sellers that sold bump stocks or commonly used high-capacity magazines.
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Conservatives and Trump supporters said that in “debanking” the industry, financial companies were teaming with the Left in trying to kill the gun industry.
Groups such as NSSF and the NRA fought back in states, winning passage of laws banning banking discrimination against “constitutionally protected industries.” A similar proposal is moving through Congress.