Gun retailers are now off a list of businesses deemed “high risk” by the Federal Deposit Insurance Corp.
The watch list is part of “Operation Choke Point”, a Justice Department effort cut off banking and credit services to businesses prone to fraud. The types of companies on the list include porn shops, payday lenders, and pyramid schemes.
After learning of the list earlier this year, the National Shooting Sports Foundation (NSSF), the trade association for the firearms industry, put pressure on key members of Congress to address the issue.
Their efforts worked. The Federal Deposit Insurance Corp (FDIC) recently removed gun retailers from the watch list and revised their guidelines for Operation Choke Point.
The NSSF addressed the FDIC’s decision in a press release:
An FDIC spokesman publicly blamed “misunderstandings” and “misinterpretations” and said the agency never meant to prevent banks from conducting transactions or providing services to the types of businesses on its list. Importantly, the agency issued revised guidance that focused on third party payment processors but also declared more broadly that, “It is the FDIC’s policy that insured institutions (banks) that properly manage customer relationships are neither prohibited nor discouraged from providing services to any customer operating in compliance with applicable law.”
What do you think about this story? Share your thoughts in the comments section below.