Citizens Bank Faces Backlash as Customers Withdraw Funds Over ICE Detention Center Financing

Citizens Financial Group is facing mounting pressure from activists, shareholders, and customers outraged over its financial ties to private prison companies CoreCivic and GEO Group, operators of U.S. Immigration and Customs Enforcement (ICE) detention centers. These centers have been plagued by inhumane conditions and the deaths of more than 20 detainees, making Citizens’ ongoing support a lightning rod for criticism.

The Greater Boston Interfaith Organization (GBIO) announced it would withdraw $1 million from Citizens accounts after CEO Bruce Van Saun allegedly reneged on a promise to meet and discuss the bank’s relationship with these private prison operators. GBIO and the De-ICE Citizens Bank Coalition accuse Citizens of funneling $2.5 billion in financing to CoreCivic and GEO Group, a move they say contradicts the bank’s community commitments.

“We come today because we’re deeply troubled with what they’re doing with our money,” said Rev. John Edgerton of GBIO. “People come to my church and they give money from their wages. They’re generous to our church, and we deposit it here at the bank, and then the bank uses it toward private prisons.”

While many major banks cut ties with private prison companies in 2019 following public outcry, Citizens stood apart by not severing these relationships. In fact, a recent securities filing revealed that Citizens expanded GEO Group’s borrowing capacity by $100 million earlier this year.

Citizens spokespersons have declined to comment on specific client relationships, instead emphasizing that the bank conducts “rigorous due diligence” and is “prepared to exit relationships” if standards are not met. However, activists view this as a stalling tactic amid growing protests and shareholder activism.

GBIO’s shareholder members, who purchased shares specifically to attend the bank’s annual meeting, were largely met with silence after Van Saun failed to engage on the issue. GBIO has pledged to escalate its withdrawal efforts beyond the initial $1 million if the bank refuses to address the concerns.

The pushback is not isolated. The Brown University Graduate Labor Organization recently announced plans to pull $500,000 from Citizens, citing the bank’s financing of ICE detention centers that could detain their international student members. Individual customers like Carole Okun of Albany, New York, have also taken their money elsewhere after learning about Citizens’ ties to CoreCivic and GEO Group.

Okun moved $80,000 out of Citizens to Ally Bank, which she believes does not support private prison operators. “I appreciate that they help the community, but I can’t overlook the other extreme end of the spectrum,” she said.

Protests against Citizens have been ongoing since January, including coordinated demonstrations across multiple states and a large gathering outside the bank’s headquarters on the day of its shareholder meeting. Organizers aim to “shed light on the harm the bank is enabling” by financing companies responsible for ICE detention centers notorious for abuse and neglect.

Citizens insists it should not be judged solely on this issue, highlighting its investments in affordable housing and community programs. But for activists and customers, the bank’s continued support of private prisons that profit from detaining immigrants is a betrayal of community trust and human dignity.

This growing movement to divest from banks supporting ICE detention centers signals a broader demand for accountability in financial institutions complicit in human rights abuses. Citizens Bank now finds itself at the center of this fight, with its reputation and customer base on the line.