II 

★(Star Print)

Calendar No. 215 

118TH CONGRESS 

1ST SESSION S. 2860 

To create protections for financial institutions that provide financial services 

to State-sanctioned marijuana businesses and service providers for such 

businesses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 20, 2023 

Mr. MERKLEY (for himself, Mr. DAINES, Mr. SCHUMER, Ms. SINEMA, Ms. 

LUMMIS, Mr. CRAMER, Mr. BOOKER, Mr. SULLIVAN, Mr. MENENDEZ, 

Mr. KING, Mr. WYDEN, Ms. ROSEN, Mr. FETTERMAN, Ms. WARREN, Mr. 

TESTER, Ms. CORTEZ MASTO, Ms. DUCKWORTH, Ms. SMITH, Mr. 

KELLY, Ms. KLOBUCHAR, Mrs. GILLIBRAND, Mrs. MURRAY, Ms. 

HIRONO, Mr. HEINRICH, and Mr. PETERS) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

SEPTEMBER 28 (legislative day, SEPTEMBER 22), 2023 

Reported by Mr. BROWN, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To create protections for financial institutions that provide 

financial services to State-sanctioned marijuana businesses and service providers for such businesses, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Secure And Fair Enforcement Regulation Banking Act’’ 

4 or the ‘‘SAFER Banking Act’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Safe harbor for depository institutions. 

Sec. 4. Protections for providing services to State-sanctioned marijuana businesses. 

Sec. 5. Protections under Federal law. 

Sec. 6. Requirements for filing suspicious activity reports. 

Sec. 7. Guidance and examination procedures. 

Sec. 8. Banking services for hemp-related legitimate businesses and hemp-related service providers. 

Sec. 9. Treatment of income derived from a State-sanctioned marijuana business for qualification for a covered mortgage loan. 

Sec. 10. Requirements for deposit accounts. 

Sec. 11. Annual access to financial services report. 

Sec. 12. GAO study on barriers to marketplace entry. 

Sec. 13. GAO study on effectiveness of certain reports on finding certain persons. 

Sec. 14. Applicability to hemp-related legitimate businesses and hemp-related 

service providers. 

Sec. 15. FinCEN testimony. 

Sec. 1516. Rules of construction. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 

9 (1) BUSINESS OF INSURANCE.—The term 

10 ‘‘business of insurance’’ has the meaning given the 

11 term in section 1002 of the Consumer Financial 

12 Protection Act of 2010 (12 U.S.C. 5481). 

13 (2) CBD.—The term ‘‘CBD’’ means 

14 cannabidiol. 

15 (3) COMMUNITY DEVELOPMENT FINANCIAL IN16 STITUTION.—The term ‘‘community development fiVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 nancial institution’’ has the meaning given the term 

2 in section 103 of the Community Development 

3 Banking and Financial Institutions Act of 1994 (12 

4 U.S.C. 4702). 

5 (4) DEPOSITORY INSTITUTION.—Except where 

6 otherwise expressly provided, the term ‘‘depository 

7 institution’’— 

8 (A) means— 

9 (i) a depository institution, as defined 

10 in section 3(c) of the Federal Deposit In11 surance Act (12 U.S.C. 1813(c)); 

12 (ii) a Federal credit union, as defined 

13 in section 101 of the Federal Credit Union 

14 Act (12 U.S.C. 1752); and 

15 (iii) a State credit union, as defined in 

16 section 101 of the Federal Credit Union 

17 Act (12 U.S.C. 1752); and 

18 (B) includes any minority depository insti19 tution, as defined in section 308 of the Finan20 cial Institutions Reform, Recovery, and En21 forcement Act of 1989 (12 U.S.C. 1463 note). 

22 (5) FEDERAL BANKING REGULATOR.—The 

23 term ‘‘Federal banking regulator’’ means each of the 

24 Board of Governors of the Federal Reserve System, 

25 the Bureau of Consumer Financial Protection, the 


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1 Federal Deposit Insurance Corporation, the Federal 

2 Housing Finance Agency, the Office of the Comp3 troller of the Currency, the National Credit Union 

4 Administration, the Department of the Treasury (in5 cluding the Financial Crimes Enforcement Network 

6 and the Office of Foreign Assets Control), or any 

7 Federal agency or department that regulates bank8 ing or financial services, as determined by the Sec9 retary of the Treasury. 

10 (6) FINANCIAL PRODUCT OR SERVICE.—The 

11 term ‘‘financial product or service’’ has the meaning 

12 given the term in section 1002 of the Consumer Fi13 nancial Protection Act of 2010 (12 U.S.C. 5481). 

14 (7) FINANCIAL SERVICE.—The term ‘‘financial 

15 service’’— 

16 (A) means— 

17 (i) a financial product or service, re18 gardless of whether the customer receiving 

19 the product or service is a consumer or 

20 commercial entity; or 

21 (ii) a financial product or service, or 

22 any combination of products and services, 

23 permitted to be provided by— 


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1 (I) a national bank or a financial 

2 subsidiary pursuant to the authority 

3 provided under— 

4 (aa) the paragraph des5 ignated as the ‘‘Seventh’’ of sec6 tion 5136 of the Revised Statutes 

7 (12 U.S.C. 24); or 

8 (bb) section 5136A of the 

9 Revised Statutes (12 U.S.C. 

10 24a); 

11 (II) a Federal credit union, pur12 suant to the authority provided under 

13 the Federal Credit Union Act (12 

14 U.S.C. 1751 et seq.); or 

15 (III) a community development 

16 financial institution; and 

17 (B) includes— 

18 (i) the business of insurance; 

19 (ii) whether performed directly or in20 directly, the authorizing, processing, clear21 ing, settling, billing, transferring for de22 posit, transmitting, delivering, instructing 

23 to be delivered, reconciling, collecting, or 

24 otherwise effectuating or facilitating the 

25 payment of funds that are made or transVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 ferred by any means, including by the use 

2 of credit cards, debit cards, other payment 

3 cards, or other access devices, accounts, 

4 original or substitute checks, or electronic 

5 funds transfers; 

6 (iii) acting as a money transmitting 

7 business that directly or indirectly makes 

8 use of a depository institution in connec9 tion with effectuating or facilitating a pay10 ment for a State-sanctioned marijuana 

11 business or service provider in compliance 

12 with section 5330 of title 31, United 

13 States Code, and any applicable State or 

14 Tribal law; and 

15 (iv) acting as an armored car service 

16 for processing and depositing with a depos17 itory institution or a Federal reserve bank 

18 with respect to any monetary instruments, 

19 as defined in section 1956(c)(5) of title 18, 

20 United States Code. 

21 (8) HEMP.—The term ‘‘hemp’’ has the meaning 

22 given the term in section 297A of the Agricultural 

23 Marketing Act of 1946 (7 U.S.C. 1639o). 

24 (9) HEMP-RELATED LEGITIMATE BUSINESS.— 

25 The term ‘‘hemp-related legitimate business’’ means 


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1 a manufacturer, producer, or any person or company 

2 that— 

3 (A) engages in any activity described in 

4 subparagraph (B) in conformity with the Agri5 culture Improvement Act of 2018 (Public Law 

6 115–334; 132 Stat. 4490), amendments made 

7 by that Act, and the regulations issued to im8 plement that Act by the Department of Agri9 culture, where applicable, and the law of a 

10 State, an Indian Tribe, or a political subdivision 

11 of a State; and 

12 (B) participates in any business or orga13 nized activity that involves handling hemp, 

14 hemp-derived CBD products, and other hemp15 derived cannabinoid products, including culti16 vating, producing, extracting, manufacturing, 

17 selling, transporting, displaying, dispensing, dis18 tributing, or purchasing hemp, hemp-derived 

19 CBD products, and other hemp-derived 

20 cannabinoid products. 

21 (10) HEMP-RELATED SERVICE PROVIDER.—The 

22 term ‘‘hemp-related service provider’’— 

23 (A) means a business, organization, or 

24 other person that— 


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1 (i) sells goods or services to a hemp2 related legitimate business; or 

3 (ii) provides any business services, in4 cluding the sale or lease of real or any 

5 other property, legal or other licensed serv6 ices, or any other ancillary service, relating 

7 to hemp, hemp-derived CBD products, or 

8 other hemp-derived cannabinoid products; 

9 and 

10 (B) does not include a business, organiza11 tion, or other person that participates in any 

12 business or organized activity that involves han13 dling hemp, hemp-derived CBD products, or 

14 other hemp-derived cannabinoid products, in15 cluding cultivating, producing, manufacturing, 

16 selling, transporting, displaying, dispensing, dis17 tributing, or purchasing hemp, hemp-derived 

18 CBD products, and other hemp-derived 

19 cannabinoid products. 

20 (11) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

21 has the meaning given the term ‘‘Indian tribe’’ in 

22 section 102 of the Federally Recognized Indian 

23 Tribe List Act of 1994 (25 U.S.C. 5130). 


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1 (12) INSURER.—The term ‘‘insurer’’ has the 

2 meaning given the term in section 313(r) of title 31, 

3 United States Code. 

4 (13) MANUFACTURER.—The term ‘‘manufac5 turer’’ means a person who manufactures, com6 pounds, converts, processes, prepares, or packages 

7 marijuana or marijuana products. 

8 (14) MARIJUANA.—The term ‘‘marijuana’’ has 

9 the meaning given the term ‘‘marihuana’’ in section 

10 102 of the Controlled Substances Act (21 U.S.C. 

11 802). 

12 (15) MARIJUANA PRODUCT.—The term ‘‘mari13 juana product’’ means any article that contains 

14 marijuana, including an article that is a concentrate, 

15 an edible, a tincture, a marijuana-infused product, 

16 or a topical. 

17 (16) PRODUCER.—The term ‘‘producer’’ means 

18 a person who plants, cultivates, harvests, or in any 

19 way facilitates the natural growth of marijuana. 

20 (17) SERVICE PROVIDER.—The term ‘‘service 

21 provider’’— 

22 (A) means a business, organization, or 

23 other person that— 

24 (i) sells goods or services to a State25 sanctioned marijuana business; or 


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1 (ii) provides any business services, in2 cluding the sale or lease of real or any 

3 other property, legal or other licensed serv4 ices, or any other ancillary service, relating 

5 to a State-sanctioned marijuana business; 

6 and 

7 (B) does not include a business, organiza8 tion, or other person that participates in any 

9 business or organized activity that involves han10 dling marijuana or marijuana products, includ11 ing cultivating, producing, manufacturing, sell12 ing, transporting, displaying, dispensing, dis13 tributing, or purchasing marijuana or mari14 juana products. 

15 (18) STATE.—The term ‘‘State’’ means each of 

16 the several States, the District of Columbia, the 

17 Commonwealth of Puerto Rico, and any territory or 

18 possession of the United States. 

19 (19) STATE-SANCTIONED MARIJUANA BUSI20 NESS.—The term ‘‘State-sanctioned marijuana busi21 ness’’ means a manufacturer, producer, or any per22 son that— 

23 (A) engages in any activity described in 

24 subparagraph (B) pursuant to a law established 

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1 division of a State, as determined by such 

2 State, Indian Tribe, or political subdivision; and 

3 (B) participates in any business or orga4 nized activity that involves handling marijuana 

5 or marijuana products, including cultivating, 

6 producing, manufacturing, selling, transporting, 

7 displaying, dispensing, distributing, or pur8 chasing marijuana or marijuana products. 

9 SEC. 3. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 

10 (a) PROHIBITION.—A Federal banking regulator may 

11 not— 

12 (1) terminate or limit the deposit insurance or 

13 share insurance of a depository institution under the 

14 Federal Deposit Insurance Act (12 U.S.C. 1811 et 

15 seq.) or the Federal Credit Union Act (12 U.S.C. 

16 1751 et seq.) or take any other adverse action 

17 against a depository institution under the Federal 

18 Deposit Insurance Act (12 U.S.C. 1811 et seq.) or 

19 the Federal Credit Union Act (12 U.S.C. 1751 et 

20 seq.) solely because the depository institution pro21 vides or has provided financial services to a State22 sanctioned marijuana business or service provider; 

23 (2) prohibit a depository institution from pro24 viding, or penalize a depository institution for pro25 viding, financial services to— 


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1 (A) a State-sanctioned marijuana business 

2 or service provider solely because the business 

3 or service provider is a State-sanctioned mari4 juana business or service provider; or 

5 (B) a State, an Indian Tribe, or a political 

6 subdivision of a State solely because that entity 

7 exercises jurisdiction over State-sanctioned 

8 marijuana businesses; 

9 (3) recommend, incentivize, or encourage a de10 pository institution not to offer financial services to 

11 an account holder, or to downgrade or cancel the fi12 nancial services offered to an account holder, solely 

13 because— 

14 (A) the account holder is a State-sanc15 tioned marijuana business or service provider, 

16 or is an employee, owner, or operator of a 

17 State-sanctioned marijuana business or service 

18 provider; 

19 (B) the account holder later becomes an 

20 employee, owner, or operator of a State-sanc21 tioned marijuana business or service provider; 

22 or 

23 (C) the depository institution was not 

24 aware, after conducting sufficient risk-based 

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1 plicable requirements, that the account holder is 

2 an employee, owner, or operator of a State3 sanctioned marijuana business or service pro4 vider; 

5 (4) take any adverse or corrective supervisory 

6 action on a loan made to— 

7 (A) a State-sanctioned marijuana business 

8 or service provider, solely because the business 

9 is a State-sanctioned marijuana business or 

10 service provider; 

11 (B) an employee, owner, or operator of a 

12 State-sanctioned marijuana business or service 

13 provider, solely because the employee, owner, or 

14 operator is employed by, owns, or operates a 

15 State-sanctioned marijuana business or service 

16 provider, as applicable; or 

17 (C) an owner or operator of real estate or 

18 equipment that is leased to a State-sanctioned 

19 marijuana business or service provider, solely 

20 because the owner or operator of the real estate 

21 or equipment leased the equipment or real es22 tate to a State-sanctioned marijuana business 

23 or service provider, as applicable; or 

24 (5) prohibit a depository institution (or entity 

25 performing a financial service for or in association 


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1 with a depository institution) from, or penalize a de2 pository institution (or entity performing a financial 

3 service for or in association with a depository insti4 tution) for, engaging in a financial service for a 

5 State-sanctioned marijuana business or service pro6 vider solely because the business or service provider 

7 is a State-sanctioned marijuana business or service 

8 provider. 

9 (b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI10 TUTIONS.—Subsection (a) shall apply to an institution ap11 plying for a depository institution charter to the same ex12 tent as such subsection applies to a depository institution. 

13 SEC. 4. PROTECTIONS FOR PROVIDING SERVICES TO 

14 STATE-SANCTIONED MARIJUANA BUSI15 NESSES. 

16 For the purposes of sections 1956 and 1957 of title 

17 18, United States Code, and all other provisions of Fed18 eral law, the proceeds from marijuana-related activities of 

19 a State-sanctioned marijuana business or service provider 

20 that conducts all of its marijuana-related activity in com21 pliance with the marijuana-related law of the State, Indian 

22 Tribe, or political subdivision of the State shall not be con23 sidered proceeds from an unlawful activity solely be24 cause— 


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1 (1) the transaction involves proceeds from a 

2 State-sanctioned marijuana business or service pro3 vider; or 

4 (2) the transaction involves proceeds from— 

5 (A) marijuana-related activities described 

6 in section 2(19)(B) conducted by a State-sanc7 tioned marijuana business; or 

8 (B) activities described in section 2(17)(A) 

9 conducted by a service provider. 

10 SEC. 4. PROTECTIONS FOR PROVIDING SERVICES TO 

11 STATE-SANCTIONED MARIJUANA BUSI12 NESSES. 

13 For the purposes of sections 1956 and 1957 of title 18, 

14 United States Code, and all other provisions of Federal law, 

15 the proceeds from a transaction conducted by a State-sanc16 tioned marijuana business or service provider shall not be 

17 considered proceeds from an unlawful activity solely be18 cause— 

19 (1) the transaction involves proceeds from a 

20 State-sanctioned marijuana business or service pro21 vider; or 

22 (2) the transaction involves proceeds from mari23 juana-related activities described in section 2(19)(B) 

24 conducted by a State-sanctioned marijuana business 

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1 ble State, Indian Tribe, or political subdivision of a 

2 State. 

3 SEC. 5. PROTECTIONS UNDER FEDERAL LAW. 

4 (a) IN GENERAL.—With respect to providing a finan5 cial service to a State-sanctioned marijuana business 

6 (where such State-sanctioned marijuana business operates 

7 within a State, an Indian Tribe, or a political subdivision 

8 of a State that allows the cultivation, production, manu9 facture, sale, transportation, display, dispensing, distribu10 tion, or purchase of marijuana pursuant to a law or regu11 lation of such State, Indian Tribe, or political subdivision, 

12 as applicable) or a service provider (wherever located), a 

13 depository institution, an entity performing a financial 

14 service for or in association with a depository institution, 

15 a community development financial institution, or an in16 surer that provides a financial service to a State-sanc17 tioned marijuana business or service provider, and the of18 ficers, directors, employees, and agents of that depository 

19 institution, entity, community development financial insti20 tution, or insurer may not be held liable pursuant to any 

21 Federal law or regulation— 

22 (1) solely for providing such a financial service; 

23 or 

24 (2) for further investing any income derived 

25 from such a financial service. 


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1 (b) PROTECTIONS FOR FEDERAL RESERVE BANKS

2 AND FEDERAL HOME LOAN BANKS.—With respect to 

3 providing a service to a depository institution that pro4 vides a financial service to a State-sanctioned marijuana 

5 business (where such State-sanctioned marijuana business 

6 operates within a State, an Indian Tribe, or a political 

7 subdivision of a State that allows the cultivation, produc8 tion, manufacture, sale, transportation, display, dis9 pensing, distribution, or purchase of marijuana pursuant 

10 to a law or regulation of such State, Indian Tribe, or polit11 ical subdivision, as applicable) or service provider (wher12 ever located), a Federal reserve bank or Federal Home 

13 Loan Bank, and the officers, directors, and employees of 

14 the Federal reserve bank or Federal Home Loan Bank, 

15 may not be held liable pursuant to any Federal law or 

16 regulation— 

17 (1) solely for providing such a service; or 

18 (2) for further investing any income derived 

19 from such a service. 

20 (c) PROTECTIONS FOR INSURERS.—With respect to 

21 engaging in the business of insurance within a State, an 

22 Indian Tribe, or a political subdivision of a State that al23 lows the cultivation, production, manufacture, sale, trans24 portation, display, dispensing, distribution, or purchase of 

25 marijuana pursuant to a law or regulation of such State, 


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1 Indian Tribe, or political subdivision, as applicable, an in2 surer that engages in the business of insurance with a 

3 State-sanctioned marijuana business or service provider or 

4 that otherwise engages with a person in a transaction per5 missible pursuant to a law (including regulations) of such 

6 State, Indian Tribe, or political subdivision related to 

7 marijuana, and the officers, directors, and employees of 

8 that insurer, may not be held liable pursuant to any Fed9 eral law or regulation— 

10 (1) solely for engaging in the business of insur11 ance; or 

12 (2) for further investing any income derived 

13 from the business of insurance. 

14 (d) FORFEITURE.— 

15 (1) DEPOSITORY INSTITUTIONS AND COMMU16 NITY DEVELOPMENT FINANCIAL INSTITUTIONS.—A 

17 depository institution or community development fi18 nancial institution that has a legal interest in the 

19 collateral for a loan or another financial service pro20 vided to an owner, employee, or operator of a State21 sanctioned marijuana business or service provider, or 

22 to an owner or operator of real estate or equipment 

23 that is leased or sold to a State-sanctioned mari24 juana business or service provider, shall not be sub25 ject to criminal, civil, or administrative forfeiture of 


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1 that legal interest pursuant to any Federal law sole2 ly for providing such loan or other financial service. 

3 (2) FEDERAL RESERVE BANKS AND FEDERAL

4 HOME LOAN BANKS.—A Federal reserve bank or 

5 Federal Home Loan Bank that has a legal interest 

6 in the collateral for a loan or another financial serv7 ice provided to a depository institution that provides 

8 a financial service to a State-sanctioned marijuana 

9 business or service provider, or to an owner or oper10 ator of real estate or equipment that is leased or 

11 sold to a State-sanctioned marijuana business or 

12 service provider, shall not be subject to criminal, 

13 civil, or administrative forfeiture of that legal inter14 est pursuant to any Federal law for providing such 

15 loan or other financial service. 

16 (3) FEDERAL NATIONAL MORTGAGE ASSOCIA17 TION, FEDERAL HOME LOAN MORTGAGE CORPORA18 TION, FEDERAL HOME LOAN BANKS, AND FEDERAL

19 AGENCIES MAKING, INSURING, OR GUARANTEEING

20 MORTGAGE LOANS OR SECURITIES.—The Federal 

21 National Mortgage Association, the Federal Home 

22 Loan Mortgage Corporation, any Federal Home 

23 Loan Bank, and any Federal agency that has a legal 

24 interest in the collateral for a residential mortgage 

25 loan, including individual units of condominiums and 


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1 cooperatives, provided that the collateral is a prop2 erty designed principally for the occupancy of 1 to 

3 4 families and underwritten, in whole or in part, 

4 based on income from a State-sanctioned marijuana 

5 business or service provider, shall not be subject to 

6 criminal, civil, or administrative forfeiture of that 

7 legal interest pursuant to any Federal law for pro8 viding, insuring, guaranteeing, purchasing, 

9 securitizing, or guaranteeing payments from a secu10 rity based on such loan. 

11 (4) OTHER PARTIES TO MORTGAGE LOANS.—A 

12 nondepository lender that makes a covered mortgage 

13 loan, as defined in section 9(a), and any person who 

14 otherwise has a legal interest in such a loan or in 

15 the collateral of the loan, including individual units 

16 of condominiums and cooperatives, provided that the 

17 collateral is a property designed principally for the 

18 occupancy of 1 to 4 families and underwritten, in 

19 whole or in part, based on income from a State20 sanctioned marijuana business or service provider, 

21 shall not be subject to criminal, civil, or administra22 tive forfeiture of that legal interest pursuant to any 

23 Federal law for providing, purchasing, securitizing, 

24 accepting, and making payments related to such cov25 ered mortgage loan solely because loan payments or 


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1 underwriting are based on income that is in whole 

2 or in part from a State-sanctioned marijuana busi3 ness or service provider. 

4 (5) DEFINITION.—In this subsection, the term 

5 ‘‘collateral’’ does not include marijuana or a mari6 juana product. 

7 SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 

8 REPORTS. 

9 Section 5318(g) of title 31, United States Code, is 

10 amended— 

11 (1) by redesignating paragraph (11) as para12 graph (12); and 

13 (2) by inserting after paragraph (10) the fol14 lowing 

15 ‘‘(11) REQUIREMENTS FOR STATE-SANCTIONED

16 MARIJUANA BUSINESSES.— 

17 ‘‘(A) IN GENERAL.—With respect to a fi18 nancial institution, or any director, officer, em19 ployee, or agent of a financial institution, that 

20 reports a suspicious transaction pursuant to 

21 this subsection, if the reason for the report re22 lates to a State-sanctioned marijuana business 

23 or service provider, the report shall comply with 

24 appropriate guidance issued by the Secretary of 

25 the Treasury. Not later than the end of the 


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1 180-day 1-year period beginning on the date of 

2 enactment of the Secure And Fair Enforcement 

3 Regulation Banking Act, the Secretary shall 

4 amend the February 14, 2014, guidance titled 

5 ‘BSA Expectations Regarding Marijuana-Re6 lated Businesses’ (FIN–2014–G001) or issue 

7 new guidance to ensure consistency with the 

8 purpose and intent of the Secure And Fair En9 forcement Regulation Banking Act, and the 

10 amendments made by that Act, and that such 

11 guidance ensures that a financial institution, 

12 and any director, officer, employee, or agent of 

13 a financial institution, continues to report sus14 picious transactions pursuant to this subsection, 

15 as applicable, relating to State-sanctioned mari16 juana businesses and service providers to pre17 serve the ability of the Financial Crimes En18 forcement Network to prevent and combat illicit 

19 activity. 

20 ‘‘(B) DEFINITIONS.—In this paragraph: 

21 ‘‘(i) FINANCIAL SERVICE; SERVICE

22 PROVIDER; STATE; STATE-SANCTIONED

23 MARIJUANA BUSINESS.—The terms ‘finan24 cial service’, ‘service provider’, ‘State’, and 

25 ‘State-sanctioned marijuana business’ have 


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1 the meanings given the terms in section 2 

2 of the SAFER Banking Act. 

3 ‘‘(ii) INDIAN COUNTRY.—The term 

4 ‘Indian country’ has the meaning given the 

5 term in section 1151 of title 18. 

6 ‘‘(iii) INDIAN TRIBE.—The term ‘In7 dian Tribe’ has the meaning given the 

8 term ‘Indian tribe’ in section 102 of the 

9 Federally Recognized Indian Tribe List 

10 Act of 1994 (25 U.S.C. 5130). 

11 ‘‘(iv) MARIJUANA.—The term ‘mari12 juana’ has the meaning given the term 

13 ‘marihuana’ in section 102 of the Con14 trolled Substances Act (21 U.S.C. 802).’’. 

15 SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 

16 (a) UNIFORM GUIDANCE AND EXAMINATION PROCE17 DURES.—Not later than 1 year after the date of enact18 ment of this Act, the Federal Financial Institutions Ex19 amination Council, in consultation with the Department 

20 of the Treasury, shall develop uniform guidance and exam21 ination procedures for depository institutions that provide 

22 financial services to State-sanctioned marijuana busi23 nesses and service providers. 

24 (b) LEGACY DEPOSITS.—The guidance and examina25 tion procedures described in subsection (a) shall permit 


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1 a depository institution to accept a deposit of currency 

2 from a State-sanctioned marijuana business if— 

3 (1) the business received the currency during 

4 the 90-day period ending on the date on which the 

5 business commenced its relationship with the deposi6 tory institution; 

7 (2) the business provided the depository institu8 tion with records sufficient to demonstrate the 

9 source of the currency being deposited by the busi10 ness; 

11 (3) the amount of the currency is reasonable in 

12 light of the expected revenue of the business, as de13 termined by the depository institution consistent 

14 with the risk-based procedures for ensuring compli15 ance with the section 5318(h) of title 31, United 

16 States Code, and any applicable regulations imple17 menting that section; and 

18 (4) the depository institution complies with any 

19 other applicable reporting requirements pursuant to 

20 subchapter II of chapter 53 of title 31, United 

21 States Code, and any applicable regulations imple22 menting that subchapter. 


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1 SEC. 8. BANKING SERVICES FOR HEMP-RELATED LEGITI2 MATE BUSINESSES AND HEMP-RELATED 

3 SERVICE PROVIDERS. 

4 (a) FINDINGS.—Congress finds that— 

5 (1) section 12619 of the Agriculture Improve6 ment Act of 2018 (Public Law 115–334; 132 Stat. 

7 5018) legalized hemp by removing it from the defini8 tion of marihuana under section 102 of the Con9 trolled Substances Act (21 U.S.C. 802); 

10 (2) despite the legalization of hemp, some hemp 

11 businesses (including producers, manufacturers, and 

12 retailers) continue to have difficulty gaining access 

13 to banking products and services; and 

14 (3) businesses involved in the sale of hemp-de15 rived CBD products are particularly affected, due to 

16 confusion about the legal status of such products. 

17 (b) DEFINITION.—In this section, the term ‘‘financial 

18 institution’’— 

19 (1) has the meaning given the term in section 

20 5312(a) of title 31, United States Code; and 

21 (2) includes a bank holding company, as de22 fined in section 2(a) of the Bank Holding Company 

23 Act of 1956 (12 U.S.C. 1841(a)). 

24 (c) FEDERAL BANKING REGULATORS’ HEMP BANK25 ING GUIDANCE.—Not later than the end of the 180-day 

26 period beginning on the date of enactment of this Act, 


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1 each Federal banking regulator shall update guidance, as 

2 in effect on the date of enactment of this Act, regarding 

3 providing financial services to hemp-related legitimate 

4 businesses and hemp-related service providers to ad5 dress— 

6 (1) compliance with obligations of financial in7 stitutions, as of the date of enactment of this Act, 

8 under Federal laws (including regulations) deter9 mined relevant by the Federal banking regulator and 

10 the Department of the Treasury, including sub11 chapter II of chapter 53 of title 31, United States 

12 Code, and its implementing regulation in conformity 

13 with this Act and the regulations relating to domes14 tic hemp production under part 990 of title 7, Code 

15 of Federal Regulations; and 

16 (2) best practices for financial institutions to 

17 follow when providing financial services, including 

18 processing payments, to hemp-related legitimate 

19 businesses and hemp-related service providers. 

20 SEC. 9. TREATMENT OF INCOME DERIVED FROM A STATE21 SANCTIONED MARIJUANA BUSINESS FOR 

22 QUALIFICATION FOR A COVERED MORTGAGE 

23 LOAN. 

24 (a) DEFINITION.—In this section, the term ‘‘covered 

25 mortgage loan’’ means any loan secured by a first or subVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 ordinate lien on residential real property, including indi2 vidual units of condominiums and cooperatives, designed 

3 principally for the occupancy of 1 to 4 families that is— 

4 (1) insured by the Federal Housing Administra5 tion under title I or title II of the National Housing 

6 Act (12 U.S.C. 1702 et seq., 1707 et seq.); 

7 (2) insured under section 255 of the National 

8 Housing Act (12 U.S.C. 1715z–20); 

9 (3) guaranteed under section 184 or 184A of 

10 the Housing and Community Development Act of 

11 1992 (12 U.S.C. 1715z–13a, 1715z–13b); 

12 (4) guaranteed, insured, or made by the De13 partment of Veterans Affairs; 

14 (5) guaranteed, insured, or made by the De15 partment of Agriculture; 

16 (6) purchased or securitized by the Federal 

17 Home Loan Mortgage Corporation or the Federal 

18 National Mortgage Association; or 

19 (7) acquired or purchased by a Federal Home 

20 Loan Bank or pledged as collateral for an advance 

21 from a Federal Home Loan Bank. 

22 (b) TREATMENT OF INCOME.— 

23 (1) IN GENERAL.—Income derived from a 

24 State-sanctioned marijuana business that operates 

25 within a State, an Indian Tribe, or a political subVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 division of a State that allows the cultivation, pro2 duction, manufacture, sale, transportation, display, 

3 dispensing, distribution, or purchase of marijuana 

4 pursuant to a law or regulation of the State, Indian 

5 Tribe, or political subdivision, as applicable, or a 

6 service provider (wherever located), shall be consid7 ered in the same manner as any other legal income 

8 for purposes of determining eligibility for a covered 

9 mortgage loan for a 1- to 4-unit property that is the 

10 principal residence of the mortgagor. 

11 (2) LIABILITY.—The mortgagee or servicer of a 

12 covered mortgage loan described in paragraph (1), 

13 or any Federal agency, the Federal National Mort14 gage Association, any Federal Home Loan Bank, or 

15 the Federal Home Loan Mortgage Corporation, may 

16 not be held liable pursuant to any Federal law or 

17 regulation solely for— 

18 (A) providing, insuring, guaranteeing, pur19 chasing, or securitizing a mortgage to an other20 wise qualified borrower on the basis of the in21 come described in paragraph (1); or 

22 (B) accepting the income described in 

23 paragraph (1) as payment on the covered mort24 gage loan. 


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1 (c) IMPLEMENTATION.—Not later than 180 days 

2 after the date of enactment of this Act— 

3 (1) the Federal Housing Administration shall 

4 implement subsection (b)— 

5 (A) by notice or mortgagee letter for loans 

6 insured under title I, title II, or section 255 of 

7 the National Housing Act (12 U.S.C. 1702 et 

8 seq., 1707 et seq., 1715z–20); and 

9 (B) by lender letter for loans guaranteed 

10 under section 184 or 184A of the Housing and 

11 Community Development Act of 1992 (12 

12 U.S.C. 1715z–13a, 1715z–13b); 

13 (2) the Department of Veterans Affairs shall 

14 implement subsection (b) by circular or handbook 

15 for loans guaranteed, insured, or made by the De16 partment; 

17 (3) the Department of Agriculture shall imple18 ment subsection (b) by bulletin for loans guaranteed 

19 or made by the Department; 

20 (4) the Federal Home Loan Mortgage Corpora21 tion shall implement subsection (b) by updating its 

22 Single-Family Seller/Servicer Guide for loans pur23 chased or securitized by the Corporation; and 

24 (5) the Federal National Mortgage Association 

25 shall implement subsection (b) by updating its SinVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 gle Family Selling Guide for loans purchased or 

2 securitized by the Association.; and 

3 (6) each Federal Home Loan Bank shall imple4 ment subsection (b) by updating its selling guidelines 

5 for loans purchased. 

6 SEC. 10. REQUIREMENTS FOR DEPOSIT ACCOUNTS. 

7 (a) SENSE OF CONGRESS.—It is the sense of Con8 gress that— 

9 (1) appropriate Federal banking agencies have 

10 a duty to ensure that the depository institutions su11 pervised by those agencies— 

12 (A) are operating in a safe and sound 

13 manner; and 

14 (B) have processes and procedures in place 

15 to identify fraudulent or illegal activity, whether 

16 activity occurs at a depository institution or 

17 through vendors or customers with which a de18 pository institution has a relationship; 

19 (2) the duty described in paragraph (1) rests on 

20 laws and regulations, not on personal beliefs or polit21 ical motivations; 

22 (3) undue pressure and coercion designed to re23 strict access to financial services for lawful busi24 nesses have no place at any appropriate Federal 

25 banking agency; 


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1 (4) depository institutions should provide bank2 ing services in the communities in which those insti3 tutions serve while carrying out customer identifica4 tion, risk-based customer diligence, and suspicious 

5 activity monitoring and reporting obligations under 

6 subchapter II of chapter 53 of title 31, United 

7 States Code (referred to in this section as the ‘‘Bank 

8 Secrecy Act’’), with respect to the customers of 

9 those institutions; 

10 (5) despite the fact that individual customers of 

11 depository institutions within broader customer cat12 egories present varying degrees of risk, all deposi13 tory institutions should take a risk-based approach 

14 in assessing individual customer relationships rather 

15 than decline to provide banking services to cat16 egories of customers without regard to the risks pre17 sented by an individual customer or the ability of the 

18 depository institution to manage the risk; 

19 (6) depository institutions that properly manage 

20 customer relationships and risks are neither prohib21 ited nor discouraged from providing services to cus22 tomers that are operating in compliance with appli23 cable Federal and State law; and 

24 (7) each depository institution is responsible for 

25 determining whether providing services to any parVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S2860.RS S2860

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1 ticular customer is consistent with the business plan, 

2 risk profile, and management capabilities of the de3 pository institution. 

4 (b) CONDITIONS FOR TERMINATION.— 

5 (1) IN GENERAL.—An appropriate Federal 

6 banking agency may not request or require a deposi7 tory institution to terminate a specific deposit ac8 count or group of deposit accounts (including, but 

9 not limited to, any deposit account of any customer 

10 that is a State-sanctioned marijuana business or 

11 service provider), unless— 

12 (A) there is a valid reason for that request 

13 or requirement, as described in paragraph (2); 

14 and 

15 (B) reputational risk is not the dispositive 

16 factor for that request or requirement. 

17 (2) VALID REASONS.— 

18 (A) IN GENERAL.—To establish a valid 

19 reason for a request or requirement under para20 graph (1), the appropriate Federal banking 

21 agency shall document that the agency— 

22 (i) has reasonable cause to believe 

23 that the applicable depository institution or 

24 any institution-affiliated party has enVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6401 E:\BILLS\S2860.RS S2860

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1 gaged, is engaged, or is about to engage 

2 in— 

3 (I) an unsafe or unsound practice 

4 in conducting business; 

5 (II) a violation of an applicable 

6 law, rule, regulation, order, condition 

7 imposed in writing, formal or informal 

8 enforcement action, or written agency 

9 formal or informal guidance, which 

10 shall include the priorities for anti11 money laundering and countering the 

12 financing of terrorism policy estab13 lished by the Secretary of the Treas14 ury under section 5318(h)(4) of title 

15 31, United States Code, or otherwise 

16 operating in a manner that is incon17 sistent with requirements of the Bank 

18 Secrecy Act; or 

19 (III) any activity, conduct, or 

20 condition that could lead to, or has 

21 led to, the issuance of a matter re22 quiring attention, a matter requiring 

23 immediate attention, a matter requir24 ing board attention, a document of 


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S 2860 RS1S 

1 resolution, or a supervisory rec2 ommendation; or 

3 (ii) has another reason, determined to 

4 be valid in the discretion of the agency, for 

5 making that request or imposing that re6 quirement. 

7 (A) IN GENERAL.—To establish a valid rea8 son for a request or requirement under para9 graph (1), the appropriate Federal banking 

10 agency shall document that valid reason, which 

11 may include that the agency has reasonable 

12 cause to believe that the applicable depository in13 stitution or any institution-affiliated party has 

14 engaged, is engaged, or is about to engage in— 

15 (i) an unsafe or unsound practice in 

16 conducting business; 

17 (ii) a violation of an applicable law, 

18 rule, regulation, order, condition imposed in 

19 writing, formal or informal enforcement ac20 tion, or written agency guidance, which 

21 shall include the priorities for anti-money 

22 laundering and countering the financing of 

23 terrorism policy established by the Secretary 

24 of the Treasury under section 5318(h)(4) of 

25 title 31, United States Code, or otherwise 


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S 2860 RS1S 

1 operating in a manner that is inconsistent 

2 with requirements of the Bank Secrecy Act; 

3 or 

4 (iii) any activity, conduct, or condi5 tion that could lead to, or has led to, the 

6 issuance of a matter requiring attention, a 

7 matter requiring immediate attention, a 

8 matter requiring board attention, a docu9 ment of resolution, or a supervisory rec10 ommendation. 

11 (B) TREATMENT OF NATIONAL SECURITY

12 AND ILLICIT FINANCE THREATS.—If an appro13 priate Federal banking agency has reasonable 

14 cause to believe that a specific customer or 

15 group of customers is, or is acting for or on be16 half of, an entity that— 

17 (i) poses a threat to national security; 

18 (ii) is involved in terrorist or other il19 licit financing; 

20 (iii) is an agent of the Government of 

21 Iran, North Korea, Syria, the People’s Re22 public of China, the Russian Federation, or 

23 any country listed on the State Sponsors of 

24 Terrorism list; 


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S 2860 RS1S 

1 (iv) is in, or is subject to the jurisdic2 tion of, any country described in clause 

3 (iii) listed on the State Sponsors of Ter4 rorism list; 

5 (v) does business with any entity de6 scribed in clause (iii) or (iv), unless the ap7 propriate Federal banking agency deter8 mines that the customer or group of cus9 tomers has conducted due diligence to 

10 avoid doing business with any entity de11 scribed in clause (iii) or (iv); or 

12 (vi) is engaged in— 

13 (I) any other illicit conduct di14 rectly or indirectly supporting a 

15 transnational criminal organization, 

16 drug trafficking organization, or 

17 money laundering organization; or 

18 (II) any other criminal activity, 

19 such belief shall satisfy the conditions permit20 ting action by the appropriate Federal banking 

21 agency under paragraph (1). 

22 (c) NOTICE REQUIREMENT.—If an appropriate Fed23 eral banking agency requests or requires a depository in24 stitution to terminate a specific deposit account or a group 


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S 2860 RS1S 

1 of deposit accounts under subsection (b), the agency 

2 shall— 

3 (1) provide such request or requirement to the 

4 institution in writing; and 

5 (2) accompany such request or requirement 

6 with the valid reason for the request or requirement, 

7 as described in subsection (b)(2). 

8 (d) CUSTOMER NOTICE.— 

9 (1) NOTICE REQUIRED.—Except as provided in 

10 paragraph (2), or as otherwise prohibited from dis11 closure by law, if an appropriate Federal banking 

12 agency requests or requires a depository institution 

13 to terminate a deposit account under subsection (b), 

14 the depository institution shall notify in writing the 

15 specific customer or group of customers, the deposit 

16 account of which is being terminated, of the valid 

17 reason for that termination, as determined under 

18 subsection (b)(2). 

19 (2) NOTICE PROHIBITED.— 

20 (A) NOTICE PROHIBITED IN CASES OF NA21 TIONAL SECURITY AND LAW ENFORCEMENT IN22 VESTIGATIONS.— 

23 (i) IN GENERAL.—Neither a deposi24 tory institution nor an appropriate Federal 

25 banking agency may provide the applicable 


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S 2860 RS1S 

1 customer or group of customers with the 

2 notice required under paragraph (1) if— 

3 (I) a Federal law enforcement 

4 agency or an element of the intel5 ligence community advises the deposi6 tory institution or the appropriate 

7 Federal banking agency that the no8 tice— 

9 (aa) may interfere with a 

10 matter of national security; 

11 (bb) involves a matter de12 scribed in subsection (b)(2)(B); 

13 or 

14 (cc) may interfere with a 

15 law enforcement investigation, 

16 criminal prosecution, or civil ac17 tion brought by a government 

18 agency; or 

19 (II) the depository institution or 

20 appropriate Federal banking agency 

21 knows or should know that, with re22 spect to that customer or group of 

23 customers, a criminal prosecution or a 

24 law enforcement investigation is pend25 ing. 


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1 (ii) CONSULTATION AND REC2 OMMENDATIONS.—An appropriate Federal 

3 banking agency and depository institution 

4 shall consult with, and follow the rec5 ommendations of, a Federal law enforce6 ment agency or element of the intelligence 

7 community, as applicable, regarding wheth8 er the notice described in paragraph (1) is 

9 required under that paragraph or prohib10 ited under clause (i) of this subparagraph. 

11 (B) NOTICE PROHIBITED IN OTHER

12 CASES.—If an appropriate Federal banking 

13 agency requests or requires a depository institu14 tion to terminate a specific deposit account or 

15 a group of deposit accounts under subsection 

16 (b), neither the depository institution nor the 

17 appropriate Federal banking agency may notify 

18 the customer or group of customers of the jus19 tification for that action, if— 

20 (i) that notice may— 

21 (I) disclose the existence of a re22 port on suspicious transactions filed 

23 under section 5318(g) of title 31, 

24 United States Code; or 


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S 2860 RS1S 

1 (II) reveal confidential super2 visory information or a concern of an 

3 appropriate Federal banking agency 

4 relating to an internal control of a de5 pository institution; or 

6 (ii) the appropriate Federal banking 

7 agency has reasonable cause to believe that 

8 the depository institution or any institu9 tion-affiliated party has engaged, is en10 gaged, or is about to engage in— 

11 (I) a violation of an applicable 

12 law, rule, regulation, order, enforce13 ment action, condition imposed in 

14 writing, or formal or informal written 

15 agency guidance; or 

16 (II) an unsafe or unsound bank17 ing practice relating to that customer 

18 or group of customers. 

19 (e) REPORTING REQUIREMENT.—Each appropriate 

20 Federal banking agency shall— 

21 (1) submit to the Committee on Banking, 

22 Housing, and Urban Affairs of the Senate and the 

23 Committee on Financial Services of the House of 

24 Representatives an annual report stating— 


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1 (A) the aggregate number of specific de2 posit accounts that the agency requested that a 

3 depository institution terminate, or required a 

4 depository institution to terminate, during the 

5 previous year; and 

6 (B) the legal authority on which the agen7 cy relied in making each request and require8 ment under subparagraph (A) and the fre9 quency on which the agency relied on each such 

10 authority; and 

11 (2) before submitting each report required 

12 under paragraph (1), provide the Inspector General 

13 of the agency with an opportunity to conduct an 

14 evaluation or review of the activity described in that 

15 report, which the Inspector General shall submit to 

16 the committees described in paragraph (1) concur17 rently with the submission of the report under para18 graph (1). 

19 (f) INCREASING ACCESS TO DEPOSIT ACCOUNTS FOR

20 BUSINESSES AND CONSUMERS.— 

21 (1) IN GENERAL.—Not later than 2 years after 

22 the date of enactment of this Act, the appropriate 

23 Federal banking agencies, in consultation with appli24 cable State bank supervisors, the Secretary of Com25 merce, and the Secretary of the Treasury, shall colVerDate Sep 11 2014 01:56 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6401 E:\BILLS\S2860.RS S2860

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1 lectively promulgate rules or guidance to increase ac2 cess to deposit accounts for businesses and con3 sumers. 

4 (2) STANDARDS.—The rules or guidance pro5 mulgated under paragraph (1) shall include stand6 ards for— 

7 (A) entering into and maintaining indi8 vidual consumer relationships and relationships 

9 with categories of consumers; 

10 (B) increasing access to deposit accounts— 

11 (i) in the communities in which depos12 itory institutions serve, including rural 

13 communities and low- and moderate-in14 come communities, which may be tailored 

15 to account for the business models of com16 munity banks and credit unions; and 

17 (ii) for Tribal communities, including 

18 by overcoming historical barriers to au19 thenticating the identities of individuals 

20 and other challenges to obtaining deposit 

21 accounts; 

22 (C) depository institutions to use innova23 tive technologies to increase access to deposit 

24 accounts while maintaining appropriate third25 party risk management and oversight; and 


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1 (D) features of a deposit account that are 

2 responsive to the needs of an unbanked busi3 ness or consumer. 

4 (g)(f) BIENNIAL FDIC AND NCUA SURVEY AND RE5 PORT ON ACCESS TO DEPOSIT ACCOUNTS BY SMALL AND

6 MEDIUM-SIZED BUSINESSES.— 

7 (1) IN GENERAL.—The Federal Deposit Insur8 ance Corporation and the National Credit Union Ad9 ministration shall conduct a biennial survey on the 

10 efforts of depository institutions to provide greater 

11 access to deposit accounts to small and medium12 sized businesses that may have encountered difficul13 ties in accessing or maintaining deposit accounts. 

14 (2) CONSIDERATIONS.—In conducting each sur15 vey required under paragraph (1), the Federal De16 posit Insurance Corporation and the National Credit 

17 Union Administration shall consider what issues and 

18 barriers most frequently prevent small and medium19 sized businesses from accessing or maintaining de20 posit accounts that are necessary to operate those 

21 businesses. 

22 (h)(g) RULE OF CONSTRUCTION.—Nothing in this 

23 section may be construed to limit or restrict the authority 

24 of an appropriate Federal banking agency to— 


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1 (1) identify or discuss potential supervisory 

2 findings with the staff or management of a deposi3 tory institution, including findings involving finan4 cial condition, governance, consumer protection, in5 ternal controls, or unsafe or unsound conditions; or 

6 (2) identify or discuss deficiencies in compliance 

7 or risks associated with the Bank Secrecy Act, in8 cluding anti-money laundering or countering the fi9 nancing of terrorism practices. 

10 (i)(h) DEFINITIONS.—In this section: 

11 (1) APPROPRIATE FEDERAL BANKING AGEN12 CY.—The term ‘‘appropriate Federal banking agen13 cy’’ means— 

14 (A) the appropriate Federal banking agen15 cy, as defined in section 3 of the Federal De16 posit Insurance Act (12 U.S.C. 1813); and 

17 (B) the National Credit Union Administra18 tion, in the case of an insured credit union, as 

19 defined in section 101 of the Federal Credit 

20 Union Act (12 U.S.C. 1752). 

21 (2) DEPOSITORY INSTITUTION.—The term ‘‘de22 pository institution’’ means— 

23 (A) a depository institution, as defined in 

24 section 3 of the Federal Deposit Insurance Act 

25 (12 U.S.C. 1813); and 


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1 (B) an insured credit union, as defined in 

2 section 101 of the Federal Credit Union Act (12 

3 U.S.C. 1752). 

4 (3) INTELLIGENCE COMMUNITY.—The term 

5 ‘‘intelligence community’’ has the meaning given the 

6 term in section 3 of the National Security Act of 

7 1947 (50 U.S.C. 3003). 

8 SEC. 11. ANNUAL ACCESS TO FINANCIAL SERVICES RE9 PORT. 

10 The Federal banking regulators shall submit to Con11 gress an annual report containing— 

12 (1) information and data on the availability of 

13 access to financial services for minority-owned, vet14 eran-owned, women-owned, Tribal community15 owned, and small State-sanctioned marijuana busi16 nesses; and 

17 (2) any regulatory or legislative recommenda18 tions for expanding access to financial services for 

19 minority-owned, veteran-owned, women-owned, Trib20 al community-owned, and small State-sanctioned 

21 marijuana businesses and hemp-related legitimate 

22 businesses. 


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S 2860 RS1S 

1 SEC. 11. ANNUAL ACCESS TO FINANCIAL SERVICES RE2 PORT. 

3 (a) FEDERAL BANKING REGULATORS.—The Federal 

4 banking regulators shall submit to Congress an annual re5 port containing information and data on the availability 

6 of access to financial services for minority-owned, veteran7 owned, women-owned, Tribal community-owned, and small 

8 State-sanctioned marijuana businesses. 

9 (b) GAO.—The Comptroller General of the United 

10 States shall submit to Congress an annual report that, 

11 based on the information contained in the report submitted 

12 under subsection (a) for the applicable year, contains regu13 latory or legislative recommendations for expanding access 

14 to financial services for minority-owned, veteran-owned, 

15 women-owned, Tribal community-owned, and small State16 sanctioned marijuana businesses. 

17 SEC. 12. GAO STUDY ON BARRIERS TO MARKETPLACE 

18 ENTRY. 

19 (a) STUDY.—The Comptroller General of the United 

20 States shall conduct a study on the barriers to market21 place entry, including in the licensing process, and the ac22 cess to financial services for potential and existing minor23 ity-owned, veteran-owned, women-owned, and small State24 sanctioned marijuana businesses and hemp-related legiti25 mate businesses. 


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1 (b) REPORT.—Not later than 2 years after the date 

2 of enactment of this Act, the Comptroller General of the 

3 United States shall submit to Congress a report con4 taining— 

5 (1) all findings and determinations made in 

6 conducting the study required under subsection (a); 

7 and 

8 (2) any regulatory or legislative recommenda9 tions for removing barriers to marketplace entry and 

10 success, including in the licensing process, and ex11 panding access to financial services for potential and 

12 existing minority-owned, veteran-owned, women13 owned, and small State-sanctioned marijuana busi14 nesses and hemp-related legitimate businesses. 

15 SEC. 13. GAO STUDY ON EFFECTIVENESS OF CERTAIN RE16 PORTS ON FINDING CERTAIN PERSONS. 

17 (a) IN GENERAL.—Not later than 2 years after the 

18 date of enactment of this Act, the Comptroller General 

19 of the United States, in consultation with the Attorney 

20 General, shall conduct a study on— 

21 (1) the effectiveness of reports on suspicious 

22 transactions filed pursuant to section 5318(g) of 

23 title 31, United States Code, at finding individuals 

24 or organizations suspected or known to be engaged 

25 with transnational criminal organizations; and 


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1 (2) whether any engagement described in para2 graph (1) exists in a State, an Indian Tribe, or a 

3 political subdivision of a State that allows the cul4 tivation, production, manufacture, sale, transpor5 tation, display, dispensing, distribution, or purchase 

6 of marijuana. 

7 (b) REQUIREMENTS.—The study required under sub8 section (a) shall examine reports on suspicious trans9 actions— 

10 (1) relating to marijuana-related businesses, as 

11 described in the guidance entitled ‘‘BSA Expecta12 tions Regarding Marijuana-Related Businesses’’, 

13 published by the Financial Crimes Enforcement Net14 work of the Department of the Treasury on Feb15 ruary 14, 2014, during the period beginning on Jan16 uary 1, 2014, and ending on the date of enactment 

17 of this Act; and 

18 (2) relating to State-sanctioned marijuana busi19 nesses during the period beginning on January 1, 

20 2014, and ending on the date that is 1 year after 

21 the date of enactment of this Act. 


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S 2860 RS1S 

1 SEC. 14. APPLICABILITY TO HEMP-RELATED LEGITIMATE 

2 BUSINESSES AND HEMP-RELATED SERVICE 

3 PROVIDERS. 

4 The provisions of this Act (other than sections 6 and 

5 13) shall apply with respect to hemp-related legitimate 

6 businesses and hemp-related service providers in the same 

7 manner as such provisions apply with respect to State8 sanctioned marijuana businesses and service providers. 

9 SEC. 15. FINCEN TESTIMONY. 

10 Not later than 1 year after the date of enactment of 

11 this Act, and annually thereafter, the Director of the Finan12 cial Crimes Enforcement Network of the Department of the 

13 Treasury shall testify before the Committee on Banking, 

14 Housing, and Urban Affairs of the Senate and the Com15 mittee on Financial Services of the House of Representa16 tives regarding anti-money laundering efforts. 

17 SEC. 1516. RULES OF CONSTRUCTION. 

18 (a) NO REQUIREMENT TO PROVIDE FINANCIAL

19 SERVICES.—Nothing in this Act shall require a depository 

20 institution, an entity performing a financial service for or 

21 in association with a depository institution, a community 

22 development financial institution, or an insurer to provide 

23 financial services to a State-sanctioned marijuana busi24 ness, service provider, or any other business. 

25 (b) GENERAL EXAMINATION, SUPERVISORY, AND

26 ENFORCEMENT AUTHORITY.—Nothing in this Act may be 


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S 2860 RS1S 

1 construed in any way to limit or otherwise restrict the gen2 eral examination, supervisory, and enforcement authority 

3 of the Federal banking regulators (including the Depart4 ment of the Treasury), provided that any supervisory or 

5 enforcement action is not being taken solely because of the 

6 provision of financial services to a State-sanctioned mari7 juana business or service provider. 

8 (c) BUSINESS OF INSURANCE.—Nothing in this Act 

9 shall interfere with the regulation of the business of insur10 ance in accordance with the Act entitled ‘‘An Act to ex11 press the intent of the Congress with reference to the reg12 ulation of the business of insurance’’, approved March 9, 

13 1945 (commonly known as the ‘‘McCarran-Ferguson 

14 Act’’; 15 U.S.C. 1011 et seq.), and the Dodd-Frank Wall 

15 Street Reform and Consumer Protection Act (12 U.S.C. 

16 5301 et seq.). 

17 (d) LAW ENFORCEMENT AUTHORITY.—Nothing in 

18 this Act shall restrict or limit the ability of Federal law 

19 enforcement agencies to investigate and prosecute money20 laundering crimes involving proceeds of illegal activity 

21 other than marijuana-related activities conducted in com22 pliance with the law of the State, Indian Tribe, or political 

23 subdivision of a State by a State-sanctioned marijuana 

24 business or service provider. 


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kjohnson on DSK7ZCZBW3PROD with $$_JOB
Calendar No. 215 

118TH CONGRESS 

1ST SESSION S. 2860 

A BILL 

To create protections for financial institutions that 

such businesses, and for other purposes. marijuana businesses and service providers for provide financial services to State-sanctioned 

SEPTEMBER 28 (legislative day, SEPTEMBER 22), 2023 

Reported with amendments 


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