A new report from the Select Subcommittee on the Weaponization of the Federal Government finds that federal law enforcement agencies asked major banks to monitor customers who oppose gun control and support strong border policies. The agencies equated these conservative views with potential “violent extremism.”
The investigation into the federal government’s surveillance of Americans’ financial activities began in May 2023, after House Republicans discovered that Bank of America had voluntarily turned customer data over to the feds in connection with the January 6, 2021 Capitol protests.
At that time, FBI whistleblowers alleged that BofA had given the agency records from a “huge list” of customers who were in Washington D.C. on or around that date or who used a debit or credit card to purchase a firearm around that time. The whistleblowers claimed these actions were taken was without warrants, probable cause, or any of the constitutional protections that would be typically required.
After a year-long investigation, the committee found that the FBI worked with not only BofA, but many other financial institutions like Barclays, U.S. Bank, Charles Schwab, HSBC, and PayPal who voluntarily shared private customer banking records “with federal law enforcement outside of normal legal process.” The feds were particularly interested in purchases from sporting goods stores like Cabela’s and Bass Pro Shops that sell firearms. The investigation also found that the FBI and other agencies flagged “Trump,” “MAGA,” “Bible” and other right-coded terms for banks to search in the transactions of customers who were not suspected of committing any crime. In one guidance, the agency said buying “religious texts” could be an indication of “extremism.”
Perhaps the most explosive revelation centers on an intelligence document titled “Domestic Violent Extremists Likely Emboldened in Aftermath of Capitol Breach” that the FBI, the Department of Homeland Security, and the National Counterterrorism Center shared with about 650 private financial institutions. In it, the agencies identify certain viewpoints they say could correspond with being a violent extremist. It includes opposition to gun control legislation, support for measures to control the border and crack down on illegal immigration, opposition to COVID-19 lockdowns and vaccine mandates, and a belief in the existence of a deep state. The agencies asked the financial institutions to search customer transaction records for evidence of these beliefs and share that data with them. They also created a secret portal for a select group of major banking institutions that allowed for ongoing backchannel information sharing.
LISTEN: Hear the full report from the House Weaponization Hearing on Morning Wire
In essence, the subcommittee says that the FBI and other federal law enforcement agencies have weaponized financial institutions against conservatives. As the House report put it, “support for typical conservative policies…may result in an individual being labeled by the FBI as [domestic violence extremist] “Likely to Pose [an] Increasing Threat at Lawful Protests, Rallies, [and] Demonstrations.”
During a March 7 hearing related to these findings, subcommittee chair Jim Jordan (R-OH) said the message federal authorities are sending is “if you’ve got the wrong political beliefs, you’re potentially a domestic violent extremist.”
“We’ve seen the censorship, now we see what’s happening with big banks and big government relative to your financial data,” Jordan said. “Again, all this being done with no process, no warrant, no notification to the customer that the banks are actually supposed to serve. Big government’s not supposed to use big tech to censor Americans, and big government shouldn’t be working with big banks to target Americans for behavior that is legal and constitutional.”
In response to these revelations, Congresswoman Elise Stefanik (R-N.Y.) has introduced the “Protecting Privacy in Purchases Act.” The bill would ban banks and credit card companies from using a code to track gun purchases, something she says would create a “backdoor gun registry.”
However, the bill would not address the broader terms the FBI and other agencies were asking banks to search, and it is not yet clear how or if Republicans will respond to those issues legislatively.
Brian Knight, Senior Research Fellow at the Mercatus Center at George Mason University, said during the hearing the Weaponization Committee should be strategizing about how to protect Americans from unconstitutional financial data collecting at the bank-level. “I think that efforts to efforts to restrict the collection of data at the bank level are the best option we have currently,” he testified. “Because under current law, once the bank has that data, government has that data. So preventing the collection at the bank level is your first best option.”
Jordan Peterson, who is a Daily Wire personality, also testified at the March 7 hearing, warning that the practices the FBI and other federal agencies are currently involved in can quickly lead to a Chinese-style social credit system, where people with disfavored views find it very difficult to carry out financial transactions.
“This allows you purposefully to be shut out of all activities that can be virtualized,” he warned. “And in a rapidly virtualizing world, this increasingly means all activities. Driving, shopping, working, eating, finding shelter. Even fraternizing with friends and family. As merely being in the presence of someone with a low social credit score means that your own score can be lowered.”
He added that this is “precisely the payment system most desired by the most tyrannical.”
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Listen to the full report on Morning Wire.