WASHINGTON—With action expected next week, a bipartisan group of senators have introduced a revised version of legislation they say will provide greater clarity and legal certainty at the federal level for financial institutions to provide services to marijuana-related businesses (MRBs) in states that have legalized marijuana.
According to a NAFCU analysis, the Secure and Fair Enforcement Regulation (SAFER) Banking Act is similar to the SAFE Banking Act, but includes additional provisions for federal banking regulators “to ensure that banks and credit unions are operating in a safe and sound manner, including having processes and procedures to identify fraudulent or illegal activity.”
The Sponsors
As CUToday.info reported earlier, the Senate Banking Committee is expected to mark up the bill next week. It was introduced by Sen. Jeff Merkley (D-OR), with cosponsors including Sens. Steve Daines (R-MT), Chuck Schumer (D-NY), Kyrsten Sinema (I-AZ), Cynthia Lummis (R-WY), Kevin Cramer (R-ND), Cory Booker (D-NJ), Dan Sullivan (R-AK) and Robert Menendez (D-NJ).
NAFCU, CUNA and credit unions have long-pressed lawmakers to provide credit unions with legal clarity and certainty for serving MRBs. The lack of such clarity has kept most credit unions out of the marijuana banking business.
‘Resolve These Issues’
“The SAFER Banking Act would resolve these issues by providing a safe harbor for banks, credit unions, other financial institutions, and payment processors that provide services to these State-sanctioned businesses, allowing them to operate in the financial mainstream,” according to a released statement by the legislation’s proponents. “By shifting these businesses and their employees away from cash-reliant businesses and into the financial mainstream, this bill helps to promote public safety for the communities in which these businesses operate.”
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