The Credit Union National Association (CUNA) voiced its support for including the Secure and Fair Enforcement (SAFE) Banking Act in the final version of the America COMPETES Act.
The SAFE Banking Act would prohibit federal regulators from taking punitive measures against financial institutions that provide banking services to legitimate cannabis-related businesses and ancillary businesses that serve them. Currently, financial institutions that offer banking services to legitimate and licensed cannabis businesses under state laws are subject to criminal prosecution under several federal statutes.
“The SAFE Banking Act of 2021 would offer narrowly targeted federal protections for credit unions and other financial institutions accepting deposits, extending credit, or providing payment services to an individual or business engaged in cannabis-related commerce in states where such activity is legal with a safe harbor, so long as they are compliant with all other applicable laws and regulations,” Jim Nussle, president and CEO of CUNA, wrote to House leaders. “Furthermore, the SAFE Banking Act provides safe harbor to credit unions and their employees who are not aware if their members or customers are involved in this business.”
In February, the America COMPETES Act passed the House with the SAFE Banking Act attached. However, it passed the Senate without it attached, so the differences will be worked out in conference committee.
“Many credit unions operate in states where their voters or legislatures have made cannabis legal in one form or another,” the letter reads. “Therefore, CUNA believes that financial institutions should be permitted to lawfully serve businesses that engage in activities authorized under their state laws, even when such activity may be inconsistent with federal law.”