WASHINGTON–Will today be the day? After many years of failed efforts in Congress to enact legislation that would amend federal law and allow financial institutions to serve cannabis-related businesses in states where voters have given the OK, the Senate Banking Committee today will be marking up the Secure and Fair Enforcement Regulation (SAFER) Banking Act.
The SAFER Act, which has the backing of credit union trade groups, is the successor legislation to the SAFE Act, which died in several previous sessions of Congress. Whether the SAFER Act will do better is unknown, especially given the other issues before Congress.
Ahead of today’s mark-up, NAFCU sent a letter to committee urging several potential revisions to the bill it said would provide greater clarity and certainty.
In the letter, NAFCU Vice President of Legislative Affairs Brad Thaler specifically addressed concerns in section 10 of the bill, which is related to federal banking regulators’ authorities.
‘Dramatic’ Increase in Authorities
“NAFCU supports the intent of this bill, but we are concerned that the new language in the base text could be read to dramatically increase regulators’ authorities and discretion, which could have a significant impact on credit unions,” Thaler wrote. According to NAFCU, it is concerned some of the provisions could:
- Add regulatory burdens and regulator overreach, especially as it relates to ways in which financial institutions should engage with consumers to “increase access”
- Give financial regulators too much discretion in terminating a deposit account, which NAFCU said should only be based on violations of the law, unsafe or unsound practices, or violations of exam-related issues
- Lead to varying notice requirements across the banking regulators.
Should be Part of Survey
In addition, NAFCU said NCUA should be added to the biennial survey on accessing deposit accounts for businesses – a stipulation of section 10.
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