Treasury Department Flags Anti-ESG Banking Laws as Security Threat

Florida's new law and similar state measures could hinder efforts to combat money laundering and terrorism financing, warns Treasury.

The Treasury Department's letter highlights risks posed by laws restricting banks from considering environmental, social, and governance (ESG) factors.
Florida's law, signed by Governor Ron DeSantis, prevents banks from using non-financial factors in business decisions.
Treasury officials argue such laws could aid international criminals and terrorists by creating financial system vulnerabilities.
The response follows a request from bipartisan lawmakers concerned about national security implications.
Several other states are considering or have enacted similar laws, raising broader security concerns.