1. Short title This Act may be cited as the Financial Institution Customer Protection Act of 2023 . 2. Requirements for deposit account termination requests and orders (a) Definitions In this section— (1) the term appropriate Federal banking agency — (A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and (B) in the case of an insured credit union, means the National Credit Union Administration Board; (2) the term depository institution — (A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and (B) includes an insured credit union; and (3) the term insured credit union has the meaning given the term in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). (b) Termination requests or orders must be material (1) In general The appropriate Federal banking agency may not formally or informally request or order a depository institution to terminate a specific customer account or group of customer accounts or to otherwise restrict or discourage a depository institution from entering into or maintaining a banking relationship with a specific customer or group of customers unless— (A) the agency has a material reason for the request or order; and (B) that reason is not based solely on reputation risk to the depository institution. (2) Treatment of national security threats The appropriate Federal banking agency shall satisfy the requirement under paragraph (1) if the agency believes a specific customer or group of customers is, or is acting as a conduit for, an entity that— (A) poses a threat to national security; (B) is involved in terrorist financing; (C) is an agency of the Government of Iran, North Korea, Syria, or any country listed from time to time on the state sponsor of terrorism list; (D) is located in, or is subject to the jurisdiction of, any country described in subparagraph (C)