FSC Meets with Treasury Officials, Calls on Regulators to End Banking Discrimination

Free Speech Coalition met with senior officials at the US Department of Treasury last week to alert them to the ways in which anti-trafficking and anti-money laundering regulations are being unfairly applied to adult workers and businesses. Officials were largely unaware of the issue, or the scope of debanking within the industry, and committed to working with FSC and other groups to help address the issue.

“In each of our trips to DC, we’ve found broad agreement that financial discrimination harms adult businesses and workers,” says Alison Boden, Executive Director of Free Speech Coalition. “The question is why it’s happening and how to fix it. We’re encouraged by our discussions last week, and look forward to working with Congress, Treasury and others to change discriminatory policies that lead to instability, vulnerability and exploitation.”

Following the meeting, Free Speech Coalition submitted a comprehensive response to the U.S. Department of the Treasury's Request for Information (RFI) on Financial Inclusion. In the letter, FSC shed light on the challenges faced by individuals in the legal adult industry, particularly the systematic de-banking and financial discrimination they encounter despite engaging in legal work. The RFI draws on FSC’s study on Financial Discrimination and the Adult Industry showing that nearly four out of five respondents experiencing some form of financial discrimination, including account closures by financial service providers, loan and insurance application denials, and housing and employment discrimination.

The Free Speech Coalition stands firm in our commitment to advocating for the rights and freedoms of our members, who deserve equal access to basic financial products and services without discrimination. We commend the Treasury's dedication to advancing financial inclusion and promoting a more transparent financial system. However, we urge further evaluation and action to address the unintended consequences of financial institutions' misinterpretations of regulatory guidance, which have led to the exclusion of individuals in the adult industry from reliable banking services.

The Free Speech Coalition is working diligently to shed light on the so-called de-risking practices that are excluding vulnerable populations from the U.S. financial system. Our goal is to ensure that all of our members have the opportunity to access banking services and financial products without facing unjust discrimination. 

To read FSC’s comment, please visit: https://www.regulations.gov/comment/TREAS-DO-2023-0014-0041