U.S. Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT) introduced a bill that would ensure that cannabis businesses have access to banking services.
Due to federal restrictions on cannabis, many legal cannabis businesses are denied access to the banking system because banks fear they may be prosecuted under federal law given the ongoing federal restrictions on cannabis. This applies to even those states where cannabis is legal. The lack of banking services, such as bank accounts, credit cards, and checks, has forced legal cannabis businesses to operate in cash. The legislators argue that this is not only impractical and inconvenient, but it can lead to tax evasion and robberies, including one that resulted in the murder of a store clerk in Portland.
The Secure and Fair Enforcement (SAFE) Banking Act would prohibit any penalties on banks for providing financial services to a legitimate state-sanctioned and regulated cannabis business. It would also prohibit the termination of a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business. Further, the bill would create a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate cannabis businesses.
“No one working in a store or behind a register should have to worry about experiencing a traumatic robbery at any moment,” Merkley said. “That means we can’t keep forcing legal cannabis businesses to operate entirely in cash—a nonsensical rule that is an open invitation to robbery and money laundering. Let’s make 2021 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees safe.”
The lawmakers said it would improve community safety and make it easier for Americans of color to access the capital necessary to participate in the merging cannabis industry.
“Montana businesses shouldn’t have to operate in all-cash — they should have a safe way to conduct business,” Daines said. “My bipartisan bill will provide needed certainty for legal Montana cannabis businesses and give them the ability to freely use banks, credit unions, and other financial institutions without the fear of punishment. This, in turn, will help increase public safety, reduce crime, support Montana small businesses, create jobs, and boost local economies. A win-win for all.”
A similar bill was introduced in the House last week.