The Treasury Department has issued a warning regarding state laws that restrict banks from considering environmental, social, and governance factors, citing potential negative impacts on efforts to combat money laundering and terrorism financing. The department's concerns were outlined in a letter sent to lawmakers, with specific mention of a law signed by the Governor of Florida in May.
The Florida law in question deems it an 'unsafe and unsound practice' for banks to take non-financial factors into account when conducting business. The Treasury Department's letter argues that such laws could introduce uncertainty and hinder national security initiatives.
