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Banks Closing Accounts of Porn Businesses on DOJ Directive | Clutchpot

Banks Closing Accounts of Porn Businesses on DOJ Directive

For the last 7 years, businesses involved in the porn industry have been targeted by financial institutions and have had their bank accounts closed on discovery of nature of their business. Chase, Citi, and Bank of America have all been known to close accounts or refuse to open accounts for adult entertainment businesses, porn stars, and even sex bloggers. While the banks claim their refusal to work with these groups is based on the ‘high-risk’ nature of the business they occupy, recent allegations are that this clamp down is actually due to a directive from the Department of Justice.

Operation Choke Point, according to the allegations, is an effort by federal authorities to shut down 30 or so separate industries by making it difficult or impossible for them to access banking services. Financial institutions that do not close questionable accounts when directed to do so can face penalties. Banks and credit unions of all sizes are affected by this and are compelled to follow the demands made by the DOJ.

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