The House Financial Services Committee considered an amendment to the Secure and Fair Enforcement Banking Act of 2019 (the "SAFE Banking Act"), which would provide a "safe harbor" for financial institutions and banks that supply financial services to cannabis-related businesses.
According to a staff memorandum, the amendment would prohibit federal banking regulators from engaging in legal actions against financial institutions and banks that serve state-authorized cannabis businesses. The amendment adds protections for "ancillary businesses," and requires the Federal Financial Institution Examination Council to come up with uniform guidance and examination policies to aid financial institutions that lawfully serve cannabis-related businesses. In addition, the amendment expands upon Financial Crimes Enforcement Network guidance and maintains the banks and credit unions' regulatory obligations to avoid illegal money laundering.
The Safe Banking Act goes beyond the version introduced in 2017 by insulating ancillary businesses, including real estate owners and accountants, among others, from federal laws for receiving funds from legal cannabis businesses.
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