At a meeting this week, a subcommittee of the International Organization for Standardization approved what is known as a “merchant classification code” for arms stores, a spokesman said.
The Geneva-based nonprofit’s decision has been sought by advocates of stricter gun regulation, including U.S. Sen. Elizabeth Warren and New York City Mayor Eric Adams, among other Democrats.
It also paves the way for banks that process payments to gun retailers to decide whether to issue the new code to merchants. The code helps track where an individual spends money, but does not show what specific items were purchased.
The codes were requested by Amalgamated Bank of New York, a Swiss entity known as ISO, which calls itself a socially responsible lender and investor.
Amalgamated CEO Priscilla Sims Brown said in a statement that it will allow financial institutions to use new tools to identify and report suspicious activity related to gun trafficking and mass shootings without disrupting legal gun sales.
“This action will answer the call of millions of Americans seeking safety from gun violence,” Brown said.
Some gun rights advocates worried the new codes could lead to unauthorized surveillance.
This year’s mass shooting at a Texas elementary school that killed 19 children and two teachers has plunged the United States into a long-running debate over gun control.
Several top U.S. pension fund companies have filed shareholder resolutions asking them to weigh in on the issue.
After the ISO decision was first reported by Reuters on Friday, several gun control advocates and politicians called on payment companies to adopt the new code. He cited several news reports about how mass shooters bought high-powered guns on credit.
“Credit card companies must take the next step now and flag gun and ammunition sales as suspicious transactions for fraud and money laundering,” New York State Attorney General Leticia James tweeted.
“We are focused on maintaining proper controls to meet our regulatory and integrity responsibilities, as well as preventing illegal activity on the network,” the company said.
