SAFER Banking Act
- Last Action
- 12/6/2023
Actions
- 2023-12-06Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 118-496.
- 2023-09-28Placed on Senate Legislative Calendar under General Orders. Calendar No. 215.
- 2023-09-28Committee on Banking, Housing, and Urban Affairs. Reported by Senator Brown with amendments. Without written report.
- 2023-09-28Committee on Banking, Housing, and Urban Affairs. Reported by Senator Brown with amendments. Without written report.
- 2023-09-27Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with amendments favorably.
- 2023-09-20Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2023-09-20Introduced in Senate
CRS Summary
As of 2023-09-28 (25)
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 conducted by 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.
Cosponsors (20)
- Steve Daines (R-MT)
- Charles Schumer (D-NY)
- Kyrsten Sinema (I-AZ)
- Cynthia Lummis (R-WY)
- Kevin Cramer (R-ND)
- Cory Booker (D-NJ)
- Dan Sullivan (R-AK)
- Robert Menendez (D-NJ)
- Angus King (I-ME)
- Ron Wyden (D-OR)
- Jacklyn Rosen (D-NV)
- John Fetterman (D-PA)
- Elizabeth Warren (D-MA)
- Jon Tester (D-MT)
- Catherine Cortez Masto (D-NV)
- Tammy Duckworth (D-IL)
- Tina Smith (D-MN)
- Mark Kelly (D-AZ)
- Amy Klobuchar (D-MN)
- Kirsten Gillibrand (D-NY)
Subjects
- Administrative law and regulatory procedures
- Asia
- Bank accounts, deposits, capital
- Banking and financial institutions regulation
- Business records
- Congressional oversight
- Consumer affairs
- Credit and credit markets
- Criminal investigation, prosecution, interrogation
- Department of the Treasury
- Drug trafficking and controlled substances
- Drug, alcohol, tobacco use
- Evidence and witnesses
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve System
- Financial services and investments
- Fraud offenses and financial crimes
- Government information and archives
- Government liability
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.