Fish & Game News May 19, 2014 Elliott
A growing number of gun retailers say they are being frozen out of business by a slew of new banking regulations imposed by the Obama White House.
The complaint stems from the Obama administration in 2011 ordering federal regulators to increase scrutiny on banks and their customers. As a result of this order, the Federal Deposit Insurance Corp. instructed that banks carefully monitor merchants who rely on payment processors such as PayPal.
Merchants who regularly employ payment processors include pornography stores, gun stores and “drug paraphernalia shops,” according to the Washington Times.
At the same time that the FDIC urged banks to reassess their relationships with so-called “high risk” merchants, the Justice Department under Attorney General Eric Holder has been busy with Operation Choke Point, a campaign to probe credit card fraud and payment processors.
So, as a result of pressure from both the Justice Department and the FDIC, some banks have chosen to cut ties with certain merchants, including gun retailers. In some cases, banks have severed ties with gun retailers despite the merchants good standing.
Source: The Blaze