Sen. Jeff Merkley (D-Ore.) and Rep. Dave Joyce (R-Ohio) today re-introduced the SAFE Banking Act, which would help resolve the conflict between federal and state laws on cannabis that hinder financial institutions. Specifically, the SAFE Banking Act would prevent regulators from prohibiting or discouraging financial institutions from serving cannabis businesses in states where it is legal. It would also clarify that proceeds from state-legal marijuana businesses are not considered proceeds from unlawful activity under anti-money laundering laws.
The American Bankers Association has long championed the SAFE Banking Act, which has passed the House on numerous prior occasions. ABA President and CEO Rob Nichols applauded Merkley, Joyce and their bipartisan group of co-sponsors.
“We urge Congress to advance this bipartisan legislation so banks can finally provide financial services to state-licensed cannabis businesses, as well as the growing number of accountants, skilled trades, landlords, law firms and other service providers they rely on to do business,” Nichols said. “For years, the conflict between state and federal cannabis laws has left many cannabis businesses operating in cash, creating significant public safety risks in states where it’s been legalized. The SAFE Banking Act would provide banks with a clear federal safe harbor, allowing them to serve state-legal businesses while increasing transparency for law enforcement and reducing risks to the public.”
