With the reintroduction of The Secure and Fair Enforcement (SAFE) banking act, conducting financial transactions in the marijuana industry might become a lot easier. Although the journey of legislation has been around since 2015, the SAFE Banking Act was reintroduced by Sen. Jeff Merkley and 30 other co-sponsors this week.
The bill got support from over 100 members of the bipartisan group and 30 members of the senate.
The office has already passed this bill three times; however, it always remained pending before the Senate Banking Committee. But with the majority of votes from the bipartisan group and with the support of the American Bankers Association, the SAFE Banking Act might finally come to a close in 2021.
The Act was created to help people in the cannabis-related industry receive financial services from banks and credit unions.
Currently, with a lack of loan facilities or deposit insurance, several cannabis operations had to rely on dangerous cash-transactions. According to Senator Merkley, the passing of this bill would not only allow people in the marijuana industry to carry out safe transactions but will also prevent them from a traumatic robbery or money laundering. Rather than operating entirely on cash, this bill would also allow cannabis operators to take advantage of loan facilities.
The SAFE Banking ACT would also prevent banks and credit unions from forfeiture for providing financial assistance to people in the cannabis industry.
Moreover, under this bill, financial institutions would not be able to
- Terminate/limit deposit insurance just because the account holder is related to the marijuana industry.
- Prohibit any institution from offering any financial aid to an account holder just because they belong to the marijuana industry.
- Take any action on a loan borrowed by an account holder affiliated with the cannabis industry in any way.
As reported by Duane Morris Cannabis Overview, an industry blog, this bill would allow companies to reap advantages like electronic banking, checking, payroll and other accounting functionality.