“Fair access” banking laws, at the epicenter of the debates between ESG and “anti-woke” regulation and federal/state preemption, may see a resurgence under the incoming administration.

By Betty M. Huber, Arthur S. Long, Pia Naib, Austin J. Pierce, and Deric Behar

In recent years, the landscape of “fair access” banking laws, now also known as “anti-debanking” laws, has changed as quickly as the shifting political climate.

Federal and state fair access laws and regulations are legislative or regulatory measures designed to ensure that financial institutions provide equitable access to services without discrimination based on ideological, political, or social beliefs. They aim to prevent banks and financial service providers from denying access to services or products to individuals or businesses based on their lawful activities or affiliations that may be deemed controversial or politically sensitive. Critics, however, see such initiatives as an attack on environmental, social, and corporate-governance (ESG) policies in the financial system.

For market participants and their boards of directors, understanding these laws involves navigating the complex interplay between regulatory compliance and risk management on the one hand, and the evolving expectations regarding ESG in the financial sector on the other.

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