First introduced in 2019 by Rep. Ed Perlmutter (D-CO) and passed in the House of Representatives on five separate occasions, including most recently in September 2021, the SAFE (Secure and Fair Enforcement) Banking Act would normalize cannabis banking in several important ways:
- Financial institutions will be able to process legitimate cannabis business transactions, which will no longer constitute money laundering.
- Regulators will not be allowed to terminate or limit a financial institution’s depository insurance because it provides services to a legitimate cannabis-related business.
- Regulators will not be allowed to take adverse actions against or discourage financial institutions from providing services to legitimate cannabis-related businesses.
- Financial institutions will be protected from civil, criminal, or administrative asset forfeiture for providing services to legitimate cannabisrelated businesses.
- SAR reporting guidelines for legitimate cannabisrelated businesses will be amended
- The Financial Crimes Enforcement Network (FinCEN) will issue guidance and review procedures for financial institutions working with legitimate cannabis-related businesses.
The SAFE Banking Act is considered the most likely piece of major federal cannabis legislation to pass both chambers and become law this legislative session. All cannabis industry trade groups and many prominent banking and business groups support the legislation and have spent time and money to support its passage into law.
Now on its way to the U.S. Senate for the fifth time, the cannabis industry hopes the SAFE Banking Act will finally pass the Senate in a timely manner and be signed into law by President Biden thereby solving a significant problem for cannabis businesses – safe, reliable, and affordable access to the same financial services as non-cannabis businesses.
Please contact your Senator to support this important legislation.
Federal cannabis legalization could happen in the next 18 months. It represents some of the biggest opportunities and most significant threats your company faces. Arcview’s comprehensive Federal Legalization Readiness Review will help you prepare for the most likely federal legalization scenarios by digging into your business and identifying the risks and opportunities that are likely to accompany a change in federal policy.
Visit arcviewconsulting.com/federal-readiness for more information.
About the Author
Marc Brandl – Research Analyst,Arcview Market Research
Marc Brandl is a research analyst for The Arcview Group. He has over 20 years of experience in the field of cannabis – first as a campaign manager and policy activist in Washington, DC for Marijuana Policy Project (MPP) and other advocacy groups, and in the past seven years working directly in the cannabis industry.
He can be reached at [email protected]
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