Financial Institution Customer Protection Act of 2023

This bill requires federal banking agencies to have a specific, valid reason - not just concerns about a bank’s reputation - to order a bank to terminate a customer’s account or restrict banking relationships. Banks must provide customers with written justification for account terminations (unless national security is involved), and agencies must report annually to Congress on how often they’ve used this authority. It specifically prohibits terminations based solely on "reputation risk" to the bank, while allowing exceptions for national security threats or terrorism financing. The law directly affects banks, federal regulators like the FDIC, and customers whose accounts may be terminated.