Ron DeSantis Signs Anti-Woke Law to Stop Banks from Freezing Floridians’ Bank Accounts Based on Their Politics
In a move that has sparked national debate, Florida Governor Ron DeSantis has signed into law a controversial piece of legislation aimed at preventing banks from freezing or restricting Floridians’ bank accounts based on their political beliefs or affiliations. The new state law, known as HB 989, declares it would be "unsafe and unsound" for financial institutions to consider non-financial factors such as politics, religion, or environmental, social, and corporate governance (ESG) criteria when conducting business.
Florida Deters Debanking
Governor DeSantis, who has been a vocal opponent of what he terms "woke" ideology, emphasized that the law is designed to protect consumers from being coerced into adopting specific ideologies or political behaviors. "We reject a global elite trying to force their ideology on us by capturing major institutions," DeSantis stated during the signing of HB 989. "We are not going to allow big banks to discriminate based on someone’s political or religious beliefs."
The law explicitly prohibits banks from denying or canceling services, suspending accounts, or discriminating against individuals based on their political opinions, speech, affiliations, or engagement in lawful activities such as the manufacture or sale of firearms and ammunition. It also covers activities related to fossil fuel-based energy, timber, mining, and agriculture.
Furthermore, the law allows Floridians to appeal "unwarranted account cancellations and restrictions" through a coordinated complaint and investigatory process within the state’s Office of Financial Regulation. This provision places financial institutions in a challenging position, as they must navigate both federal requirements for risk assessments and compliance with Florida’s broad-based anti-discrimination law.
Treasury Bites Back
The U.S. Treasury Department has expressed strong concerns about the implications of such laws, warning that they could undermine national security by facilitating money laundering and other criminal activities. In a letter to lawmakers, Treasury Undersecretary Brian Nelson emphasized the importance of banks’ ability to conduct thorough risk assessments to prevent money laundering and terrorist financing.
"State laws interfering with financial institutions’ ability to comply with national security requirements heighten the risk that international drug traffickers, transnational organized criminals, terrorists, and corrupt foreign officials will use the U.S. financial system to launder money, evade sanctions, and threaten our national security," Nelson wrote.
This stance has been echoed by several lawmakers, including Rep. Josh Gottheimer (D-NJ), who urged states considering similar legislation to "think twice before putting America’s national security at risk."
Conclusion
The signing of HB 989 by Governor DeSantis marks a significant escalation in the battle between state and federal authorities over the role of politics in banking practices. As other conservative states consider similar measures, the debate over the balance between consumer protection, financial integrity, and national security is likely to intensify. The outcome of this conflict could have far-reaching implications for the U.S. financial system and the rights of American citizens.