The Treasury Department is warning that state laws that restrict banks from considering environmental, social and governance factors could harm efforts to address money laundering and terrorism financing. The Associated Press obtained a copy of a letter sent Thursday to lawmakers. The letter singles out a law signed by Florida Gov. Ron DeSantis that says it would be an “unsound practice" for banks to consider non-financial factors when doing business. Tennessee has a similar law, not mentioned in the Treasury letter. Conservative Republicans including DeSantis have sought to block environmental and socially conscious standards for investing. The Republicans say such initiatives can lead to unfair discrimination based on political beliefs and harm legitimate businesses.
