Senator Tim Scott (R-SC) has raised serious concerns to Treasury Secretary Janet Yellen regarding a report indicating that federal officials instructed banks to report customer data involving transactions flagged with terms such as “TRUMP” or “MAGA.” This inquiry was prompted by revelations from the Select Subcommittee on the Weaponization of the Federal Government, which indicated that the Financial Crimes Enforcement Network (FinCEN) had identified these terms in its investigations related to the events of January 6.
The instructions to banks reportedly also included monitoring transactions related to the purchase of religious texts and activities at outdoor sporting goods stores, including Cabela’s. Senator Scott, serving as the ranking member of the Senate Banking Committee, expressed his concerns in a letter, stating that these allegations, if substantiated, would represent a severe breach of American privacy rights and the undue targeting of U.S. citizens.
FinCEN’s request to banks was to aid in identifying transactions of persons of interest after January 6, 2021, using specific typologies and Merchant Category Codes. Scott’s letter, also addressed to FinCEN Director Andrea Gacki, sought clarification on the Treasury Department’s role in gathering private financial data from banks and whether directives came from the FBI or the Justice Department. He also inquired about the reasons behind flagging certain religious texts and transactions at sporting goods stores.
These allegations are particularly concerning to Scott, who referenced the Obama administration’s ‘Operation Choke Point’ initiative. Under this program, the Department of Justice coordinated with federal financial regulators to pressure financial institutions into denying services to legally operating businesses that the administration opposed ideologically, including gun retailers.
House Judiciary Chair Jim Jordan recently requested an interview with Noah Bishoff, former director of the Office of Stakeholder Integration and Engagement in FinCEN’s Strategic Operations Division, to discuss these reports. The letter to Bishoff highlighted the need to understand FinCEN’s safeguards for constitutional liberties, the government’s use of private financial data, and the collaboration between FinCEN and the private sector.
This situation has raised significant concerns about the potential misuse of the financial system and customer data for political purposes, highlighting the importance of protecting constitutional rights and due process in government investigations.