Citigroup restricts gun sales by its business partners

Citigroup is setting restrictions on the sale of firearms by its business customers, making it the first Wall Street bank to take a stance in the divisive nationwide gun control debate.

The new policy, announced Thursday, prohibits the sale of firearms to customers who have not passed a background check or who are younger than 21. It also bars the sale of bump stocks and high-capacity magazines. It would apply to clients who offer credit cards backed by Citigroup or borrow money, use banking services or raise capital through the company.

The rules, which the company described as “common-sense measures,” echo similar restrictions established by some major retailers, such as Walmart. But they also represent the boldest such move to emerge from the banking sector.

Since the deadly school shooting in Parkland, Florida, last month, renewed calls for remedies to firearms violence have led to sweeping consumer boycotts and unprecedented moves by corporate America to distance itself from the powerful gun lobby.

But federal lawmakers have taken limited action, and President Donald Trump quickly abandoned a promise to pursue gun control measures, instead promoting proposals backed by the National Rifle Association to arm teachers.

The financial services and investment community was even less engaged, staying mostly quiet on suggestions that it wield its considerable influence over gun merchants to encourage firearms-related changes.

Citigroup’s gun policy has “been a while coming,” its chief executive, Michael L. Corbat, told The New York Times on Thursday. Corbat, who called himself “an avid outdoorsman and responsible gun owner,” acknowledged that “some will find our policy too strict while others will find it too lenient.”

“We don’t pretend that these answers are perfect, but as we looked at the things we thought we could influence, we felt that, working with our clients, we could make a difference,” he said. “Banks serve a societal purpose — we believe our investors want us to do this and be responsible corporate citizens.”

The bank said it has few gun manufacturing companies as clients, but those it does work with will be asked to provide details about their product and distribution networks.