Bill addresses issues with cannabis banking

Reps. Ed Perlmutter (D-CO) and Denny Heck (D-WA) introduced last week legislation designed to specifically address cannabis banking issues.

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The Secure and Fair Enforcement (SAFE) Banking Act of 2019 allows marijuana-related businesses in states with existing regulatory structures to access the banking system. Currently, 47 states, representing 97.7 percent of the population, have legalized some form of adult recreational, medical or limited-medical use of marijuana.

“The majority of American voters have spoken and it’s happening whether we act or not,” Perlmutter said. “The SAFE Banking Act is focused solely on taking cash off the streets and making our communities safer. Only Congress can provide the certainty financial institutions need to start banking legitimate marijuana businesses – just like any other legal business – and reduce risks for employees, businesses and communities across the country.”

Perlmutter and Heck have introduced similar bills every Congress since 2013. A draft version of the SAFE Banking Act was discussed during a hearing about cannabis banking last month.

“Modern banking services and existing federal laws on financial disclosures allow law enforcement to keep records and track potential criminal activity,” Heck said. “We know based on the Treasury guidance that the federal government prioritizes keeping this product out of the hands of children and organized crime. The most effective way to do that is to not only allow, but encourage these businesses to use traditional banking methods to track their sales, deposits, expenses, tax payments, and other business transactions.”