WASHINGTON—Keith Noreika, the Acting Comptroller of the Currency, has sent a letter to Jeb Hensarling (R-TX), chairman of the House Financial Services Committee, clarifying that the Office of the Comptroller of the Currency is not and never was a part of Operation Choke Point, and that Operation Choke Point is not the policy of the OCC.
Noreika sent the letter in response to a request from Hensarling that the OCC issue a formal repudiation of Operation Choke Point, the National Law Review reported.
As CUToday.info reported, earlier this month the Justice Department announced an end to the Operation Choke Point initiative, which was launched under President Barack Obama to fight consumer fraud by denying fraudulent businesses access to banking services.
The initiative also held financial institutions and third-party processors accountable if they continued to serve a client operating in a fraudulent manner.
In rejecting Operation Choke Point, Noreika wrote that “the agency rejects the targeting of any business operating within state and federal law as well as any intimidation of regulated financial institutions into banking or denying banking services to particular businesses.”
Noreika also stated that the OCC “expects the banks it supervises to maintain banking relationships with any lawful businesses or customers they choose, so long as they effectively manage any risks related to the resulting transactions and comply with applicable laws and regulations,” the National Law Review reported.