US regulator accuses TD and BMO of debanking customers over political beliefs

On Oct. 14, 2026, the Office of the Comptroller of the Currency (OCC), a U.S. federal agency that supervises national banks, named Toronto Dominion Bank (TD) and Bank of Montreal (BMO) among nine financial institutions it says limited some customers' access to banking because of their political or religious beliefs or lawful businesses. The findings follow an August 2025 executive order signed by President Donald Trump titled "Guaranteeing Fair Banking for All Americans."

OCC Findings and Scope

The OCC reviewed 100,000 complaints tied to the nine largest banks it oversees: JPMorgan Chase Bank, Bank of America, Citibank, Wells Fargo Bank, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank. According to Comptroller Jonathan Gould, the banks allegedly "denied, debanked and discriminated against customers and lawful businesses."

The regulator stated that between 2020 and September 2025, these institutions maintained policies that restricted access to banking services or required customers to undergo heightened reviews. The OCC noted that most, but not all, of the cases involved individuals identified as conservatives. The report cited broad reputation risk policies that lacked clear standards and objective, risk-based criteria.

Specific Allegations Against TD and BMO

The OCC report did not accuse TD or BMO of outright refusing to serve clients. Instead, it flagged them for policies that could invite additional scrutiny or assign higher risk profiles to certain groups.

BMO is named six times in the 45-page report. One example involved a 2022 credit request from a customer manufacturing empty firearm magazines. The OCC said BMO evaluated the reputational risk under its environmental and social financing guidelines. Although the bank’s senior risk officer approved maintaining the relationship, the officer required continuous monitoring and established a quarterly trigger to ensure tactical sales remained below 30 per cent of total sales. The report criticized BMO’s policy, which advised account managers to work with customers to align practices with the bank’s requirements or "transition the customer out of the bank" if they declined.

TD is named 14 times in the report. The OCC cited two instances where the bank associated a customer’s political, religious, or social views with a higher level of risk, though the report stated TD did not ultimately deny service on such grounds. In one case, a loan request from a nonprofit promoting pro-life views required escalation to TD’s reputational risk committee. In another, a line of credit for a faith-based health-care sharing ministry was deemed to pose elevated reputational risk if disclosed by media or groups rejecting its practices. The OCC noted TD observed that the ministry’s "moral and religious requirements" appeared to conflict with TD’s values of diversity and inclusion.

Bank Responses and Regulatory Context

TD has not publicly responded to the investigation's findings. BMO referred requests for comment to the Bank Policy Institute, a U.S. industry group representing major banks. In a statement, the institute said, "We support efforts to establish clear and consistent standards that promote access while maintaining sound risk management, including the administration's recent efforts to prioritize supervisory attention on material financial risk rather than reputational risk."

The OCC has broad powers to impose remedial and monetary penalties, including cease and desist orders and restitution requirements. No fines have been announced against TD or BMO in this specific matter. However, the OCC previously imposed a cease and desist order and $450 million in civil penalties on TD in October 2024 for anti-money-laundering deficiencies.

Why it matters

This development highlights the intersection of U.S. political directives and international banking operations. While the findings do not directly impact Canadian accounts held with TD or BMO, they affect customers using the banks' U.S. operations, including cross-border workers and snowbirds. The case underscores the ongoing tension between regulatory mandates for fair access and banks' internal risk management policies regarding reputational and political factors.

---

Sources

• ca.finance.yahoo.com: TD, BMO among 9 banks accused of debanking U.S. customers over political beliefs — what Canadians should know
• financialpost.com: TD and BMO are in the crosshairs of a U.S. regulator. Here's why | Financial Post

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.