Mark L. Brasee
402.978.5306mbrasee@fraserstryker.com email Mark
Overview
- Issued: Executive Order 14331, August 7, 2025
- Purpose: Prohibits “politicized or unlawful debanking,” denying or restricting financial services based on political or religious beliefs or lawful business activities. Regulates reliance on subjective “reputational risk” and enforces reliance on objective, risk-based assessments only.
Scope
- Targeted agencies/entities:
- Federal banking regulators – i.e., Federal Reserve, FDIC, OCC, NCUA, CFPB (as applicable), SBA, and related FSOC member agencies.
- SBA’s role: Notify lenders/financial institutions and facilitate reinstatement of previously debanked customers.
Key Deadlines & Deliverables
| Task | Responsible Party | Deadline |
|---|---|---|
| 1. SBA efforts | SBA | 60 days (approx. by October 6, 2025) for notification; 120 days (approx. by December 5, 2025) for reinstatement See, News Release 25-74 |
| 2. Identification & remedial action | Federal banking regulators | 120 days (approx. by December 5, 2025) to identify institutions with past/current debanking practices and take remedial actions (e.g., fines, consent decrees) |
| 3. Remove “reputational risk” from guidance | Federal banking regulators | 180 days (approx. by February 3, 2026) to remove references to “reputation risk” from guidance, examination manuals, and other supervisory materials; also consider amending or rescinding regulations that may facilitate politicized debanking |
| 4. Treasury strategy | Secretary of Treasury (+ Assistant to the President for Economic Policy) | 180 days (approx. by February 3, 2026) to develop a comprehensive anti-debanking strategy, including regulatory or legislative proposals |
Enforcement & Follow-On
- Agencies may refer unlawful, particularly religion-based, debanking cases to the Attorney General/DOJ for civil enforcement.
- The EO does not establish a private right of action or create individual enforcement cause, but creates grounds for federal oversight and enforcement.
Context & Next Steps for Clients
- Compliance & Policy Review: Financial institutions (including depository institutions and credit unions) should review and potentially revise internal policies, procedures, training materials, and employee manuals to align with the EO’s mandates.
- Supervisory Materials: Expect revisions from regulators; institutions should monitor FDIC, OCC, Federal Reserve, NCUA, and CFPB guidance for updates on reputation-risk references.
- Legislative Eyes: A bill (H.R. 5014) has been introduced to codify EO 14331 into law, which could impact long-term obligations.
Summary: Key Deadlines Timeline (from August 7, 2025)
- By October 6, 2025: SBA notifies affected institutions.
- By December 5, 2025: SBA reinstates affected clients; regulators complete identification of debanking practices and begin remedial steps.
- By February 3, 2026:
- Regulators remove “reputational risk” language and consider regulatory adjustments.
- Treasury delivers a comprehensive anti-debanking strategy.
If you have any questions about the impact of Executive Order 14331, please do not hesitate to contact the attorneys on Fraser Stryker’s Banking & Finance team.
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.