MS HB1597

Creates the Mississippi Fair Banking Standards Act prohibiting state banking regulators from pressuring financial institutions to terminate customer accounts based on "reputational risk" or other non-quantitative factors like political views, religious beliefs, or affiliations

Establishes an administrative complaint process through the Department of Banking and Consumer Finance where customers alleging wrongful "debanking" may file verified complaints with a $200 filing fee, placing the burden of proof on complainants to show by clear and convincing evidence that account termination was based solely on protected non-risk factors

Authorizes penalties against complainants filing frivolous claims without substantial justification, including assessment of up to $5,000 in department costs and bars from future filings until penalties are paid

Requires the State Treasurer to review a financial institution's status as a qualified public depository upon a final cease and desist order, with potential consequences including suspension of eligibility to receive public fund deposits for up to one year

Aligns state regulatory standards with federal Executive Order 14331 "Guaranteeing Fair Banking for All Americans" while preserving financial institutions' authority to make decisions based on legitimate risk factors including anti-money laundering, fraud prevention, and creditworthiness standards, effective July 1, 2026