WASHINGTON—As Congress returns after the August recess, CUNA said one of its top legislative priorities is advancing the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1595/S. 2100), a bill that would provide protections to financial institutions serving legal cannabis-based businesses.
Leagues and credit unions highlighted the bill during their summer advocacy with lawmakers, and with Congress back in session, CUNA said it will continue its engagement.
CUNA said it does not take a position on the legalization or decriminalization of cannabis legalization but supports the ability of credit unions to serve those businesses in states where it is legal.
The Specifics
Specifically, the SAFE Banking Act would:
- Offer narrowly targeted federal protections for credit unions and other financial institutions accepting deposits, extending credit, or providing payment services to an individual or business engaged in cannabis related commerce in states where such activity is legal with a safe harbor, so long as they are compliant with all other applicable laws and regulations
- Provide safe harbor to credit unions and their employees who are not aware if their members or customers are involved in this business
As CUToday.info reported here, Rachel Pross, chief risk officer for Maps CU, Salem, Ore., has testified in support of the SAFE Banking Act twice before Congress this year, in the House Financial Services Committee and the Senate Banking Committee.
Her testimony focused on the public safety issues that come along with not allowing these businesses to access financial services, as the current all-cash nature of these businesses is a target for criminals.