Banks are facing growing pressure over the perception that they are canceling bank accounts and other services, to target conservatives and conform to corporate wokeness. There is definitely some of that going on. But the villain here is Congress and the regulators, not the banks.

The WSJ’s Allysia Finley explains:

The Bank Secrecy Act requires banks to build profiles on customers, monitor their activity, and file Suspicious Activity Reports, or SARs, with the Treasury Department’s Financial Crimes Enforcement Network if they suspect illicit activity. Such “know your customer” rules are intended to prevent money laundering…

Examiners may also covertly require banks to designate certain accounts as “high risk.” Such designations impose hefty compliance burdens that effectively force banks to close accounts…

FBI officials suggested banks file SARs on “suspicious” people so the bureau could have more financial data to investigate the Jan. 6 Capitol riot.

When government makes a suggestion, it’s an order. As a result, banks may have felt compelled to close accounts–without being able to inform customers of their reason for doing so. All the while, the mainstream media obsessed about Mr. Trump’s supposed danger to democracy.

Trump’s appointees should commit to immediately end these abusive practices – and Congress should repeal their statutory basis. In the meantime, banks should keep explaining what is actually happening to the public.