The issue of de-banking, the exclusion of individuals and entities from the financial system, has been a largely unspoken truth, known mostly to insiders such as myself. I have spent years working to protect those affected by this practice, both in the U.S. and globally, and have seen the devastating effects it can have on businesses, nonprofits, and those deemed “politically exposed persons.”
This issue was thrust into the international spotlight last week when venture capitalist Marc Andreessen appeared on the Joe Rogan podcast. Andreessen discussed the practice of de-banking, particularly in relation to the cryptocurrency industry. His comments sparked responses from prominent industry figures like the Winklevoss brothers and David Marcus, former leader of Facebook’s Libra/Diem project. They, along with others, voiced their frustrations over how this practice has impacted their businesses and projects.
In her recent memoir, former First Lady Melania Trump revealed her and her son Barron’s de-banking experiences, further underscoring the arbitrary and opaque nature of such decisions.
De-banking, a phenomenon that manifests through direct political pressures, the weaponization of regulations, or as an unintended consequence of other regulations, is economically isolating a broad range of communities, including cryptocurrency entrepreneurs, international businesses, humanitarian organizations, human rights activists, and legal immigrants.
My interest in this policy issue began in the spring of 2023 while researching sanctions policy. I found that malicious political actors were exploiting the financial system to target their opponents, both domestically and globally. For example, in Nicaragua, activists have argued that the government has abused the financial system to terminate bank accounts and strip the assets of activists and non-profit organizations.
These revelations led me to speak with numerous individuals who had been targeted in this manner. They shared their experiences of having their bank accounts arbitrarily closed, assets frozen, and private financial information weaponized against them.
Malicious political and business actors often de-bank people and entities by manipulating Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regulations. They launch targeted disinformation campaigns to falsely accuse individuals or organizations of money laundering or financing terrorism. The accusations, often amplified through state-controlled media, feed into compliance systems used by financial institutions. Once flagged, the targeted accounts are often closed or denied access to services to avoid regulatory penalties — irrespective of the credibility of the claims.
Furthermore, malicious political actors exploit Financial Intelligence Units (FIUs), which serve as clearinghouses for financial data under AML/CFT frameworks. In authoritarian regimes, FIUs often operate as tools of state repression, granting governments access to dissidents’ financial records, transaction histories, and personal details. This sensitive information is weaponized to intimidate, harass, and undermine critics both domestically and abroad.
Beyond their deliberate weaponization, the misuse of AML/CFT laws frequently yields unintended consequences that disproportionately impact vulnerable groups, such as immigrants. Financial institutions in the U.S. often classify individuals from certain regions as “high risk,”, triggering enhanced compliance measures and creating barriers to entry into the financial system. This “de-risking” practice often leaves immigrants without access to basic banking services, perpetuating cycles of financial and social exclusion.
The rise of de-banking as a political weapon is a wake-up call for us all. We need to raise awareness about this crisis and fight for a “Right to Banking” that transcends nationality, political beliefs, or economic status. Structural reforms are essential to prevent the misuse of AML/CFT regulations as tools for political repression or financial exclusion. These laws must include safeguards and clear remedies for victims of de-banking.
Together, policymakers, industry leaders, and civil society must build momentum for reforms that preserve the integrity of the financial system, including the protection of the crypto-assets sector. Only then can we ensure that the financial system, both traditional and modern, remains an inclusive and well-functioning pillar of our market economy.
