SAFER Banking Act

Summary

Secure And Fair Enforcement Regulation Banking Act or the SAFER Banking Act This bill provides protections for federally regulated financial institutions that serve state-sanctioned marijuana businesses. Currently, many financial institutions do not provide services to state-sanctioned marijuana businesses due to the federal classification of marijuana as a Schedule I controlled substance. Under the bill, a federal banking regulator may not penalize a depository institution for providing banking services to a state-sanctioned marijuana business. For example, regulators may not terminate or limit the deposit or share insurance of a depository institution solely because the institution provides financial services to a state-sanctioned marijuana business. The bill also prohibits a federal banking regulator from requesting or requiring a depository institution to terminate a deposit account unless (1) there is a valid reason, such as the regulator has cause to believe that the depository institution is engaging in an unsafe or unsound practice; and (2) reputational risk is not the dispositive factor. Additionally, proceeds from a transaction involving activities of a state-sanctioned marijuana business are no longer considered proceeds from unlawful activity. (Financial institutions that handle proceeds from unlawful activity are subject to anti-money laundering laws. Violators of these laws are subject to fines and imprisonment.) Furthermore, a financial institution, insurer, or federal agency may not be held liable or subject to asset forfeiture under federal law for providing a loan, mortgage, or other financial service to a state-sanctioned marijuana business.

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Documents

6 official files

• Reported to Senate (text)

  Reported to Senate · EN · 28 September 2023

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• Reported to Senate (PDF)

  Reported to Senate · EN · 28 September 2023

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• Reported to Senate

  summary · EN · 28 September 2023

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• Introduced in Senate (text)

  Introduced in Senate · EN · 20 September 2023

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• Introduced in Senate (PDF)

  Introduced in Senate · EN · 20 September 2023

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• Introduced in Senate

  summary · EN · 20 September 2023

  Open at official source

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