In 2013, the United States Department of Justice initiated Operation Choke Point, whose sole purpose was to investigate U.S. banks in regards to their business with firearm dealers, shady businesses, money launderers, and payday lenders.
Ever since its inception, the initiative has continuously been accused of disregarding due process when investigating banks in the United States. The allegations stated that Operation Choke Point officials forced banks to discontinue their dealings with companies and individuals in question before supplying any evidence that the said parties were in violation of any law.
Choke Point Choked Out
According to Fox News, Operation Choke Point was recently eliminated by the Trump Administration.
The program, which began under Obama’s Administration, officially ended on August 17, 2017, through a letter by the assistant attorney general. The letter stated that the cause of the shutdown was due to the fact that the program was hurting legitimate businesses instead of preventing fraud.
The assistant attorney general, Stephen Boyd, was able to convince the Chairman of the House Judiciary Committee to terminate the operation through his evidence-based criticism of the unlawful intent the initiative worked under.
Boyd stated that Operation Choke Point was started only to target and attack businesses that dealt in industries which the previous administration did not favor, such as those dealing in firearms.
In the current administration’s opinion, it is unlawful and unconstitutional to deny any legitimate business the right to do business with FDIC banks on the grounds that they are operating in an industry that is regarded to be more prone to commit fraud without supplying any evidence that the business itself has committed any fraud.
The attorney general and the current administration got what they wanted as Operation Choke Point has been closed down indefinitely.
All the FDIC policies targeting businesses in high-fraud industries, according to Operation Choke Point guidelines, have been withdrawn and all businesses that were currently being investigated under the initiative’s rules have been closed.
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