WASHINGTON -- The House Financial Services Committee has passed the credit union-backed Secure and Fair Enforcement (SAFE) Banking Act (H.R. 1595) by a bipartisan vote of 45-15. The bill would provide a safe harbor for financial institutions serving legal cannabis-related businesses.
Specifically, H.R. 1595 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
- Provides safe harbor to credit unions and their employees who are not aware if their members or customers are involved in this business.
“We thank the House Financial Services Committee for advancing the SAFE Banking Act, and for taking the time to hear from credit union and other witnesses during its consideration of the bill,” said CUNA President/CEO Jim Nussle in a statement. “Regardless of one’s feeling of legalization or decriminalization of cannabis, CUNA and others have demonstrated that the current status quo for these businesses is a public safety concern and will remain so if these businesses cannot access mainstream financial services
As CUToday.info earlier reported here, Rachel Pross, chief risk officer at Maps Credit Union, had testified on behalf of CUNA before the House in February regarding the risks faced by credit unions that serve cannabis-related businesses, as well as the businesses themselves in dealing with significant amounts of cash.
In addition, following passage of the bill out of committee, NASCUS CEO Lucy Ito said, “We commend the House Financial Services Committee for advancing the S.A.F.E. Banking Act. Today’s vote is the first step in resolving the conflict between state and federal law regarding service to legal state cannabis businesses and related businesses. After years of uncertainty, credit unions and the agencies that regulate them are anxious for clarity. While we take no position on the legalization of cannabis use, we call on Congress to promptly to pass this legislation and end the current legal conundrum.”