I 

117TH CONGRESS 

1ST SESSION H. R. 1996 

To create protections for financial institutions that provide financial services 

to cannabis-related legitimate businesses and service providers for such 

businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 18, 2021 

Mr. PERLMUTTER (for himself, Ms. VELA ́ZQUEZ, Mr. STIVERS, Mr. DAVIDSON, Mr. BLUMENAUER, Ms. LEE of California, Mr. JOYCE of Ohio, Mr. 

CORREA, Mrs. CAROLYN B. MALONEY of New York, Mr. MEUSER, Mr. 

CASTEN, Ms. BONAMICI, Mrs. LAWRENCE, Mr. LAWSON of Florida, Mr. 

PANETTA, Ms. MATSUI, Mr. ESPAILLAT, Mr. GAETZ, Mr. CRIST, Mrs. 

WATSON COLEMAN, Mr. FOSTER, Mr. VARGAS, Ms. CLARKE of New 

York, Ms. HOULAHAN, Mr. KILMER, Ms. STEVENS, Ms. NORTON, Mr. 

HASTINGS, Ms. SLOTKIN, Ms. TITUS, Mr. WELCH, Mr. SHERMAN, Ms. 

BROWNLEY, Mr. CARBAJAL, Mr. HUFFMAN, Mr. NEGUSE, Ms. STRICKLAND, Ms. WILD, Mr. GARCI ́A of Illinois, Mr. DEFAZIO, Mr. EVANS, Ms. 

MOORE of Wisconsin, Ms. CLARK of Massachusetts, Mr. GRIJALVA, Mr. 

MEEKS, Ms. DEAN, Mr. TONKO, Mr. YOUNG, Ms. SCHAKOWSKY, Mr. 

GALLEGO, Ms. BLUNT ROCHESTER, Ms. TLAIB, Mr. PETERS, Mrs. 

TRAHAN, Mrs. DINGELL, Miss RICE of New York, Mr. RESCHENTHALER, 

Mr. DAVID SCOTT of Georgia, Mr. THOMPSON of California, Ms. 

DEGETTE, Ms. SCANLON, Mr. HIGGINS of New York, Ms. SPEIER, Mrs. 

AXNE, Mr. VICENTE GONZALEZ of Texas, Ms. MACE, Ms. MCCOLLUM, 

Mr. LOWENTHAL, Mr. MCGOVERN, Ms. PRESSLEY, Mr. GARAMENDI, Mr. 

LIEU, Mrs. LURIA, Mr. HIMES, Mr. CROW, Mr. LEVIN of Michigan, Ms. 

WILLIAMS of Georgia, Mr. RODNEY DAVIS of Illinois, Mr. AUCHINCLOSS, 

Mr. BARR, Mrs. HAYES, Mr. GIBBS, Mr. MCCLINTOCK, Mr. 

DESAULNIER, Mr. COURTNEY, Ms. KUSTER, Mr. MORELLE, Mr. PASCRELL, Mr. JONES, Ms. WEXTON, Mr. BEYER, Mr. KRISHNAMOORTHI, 

Mr. CICILLINE, Mr. BRENDAN F. BOYLE of Pennsylvania, Ms. 

DELBENE, Mr. RASKIN, Mr. QUIGLEY, Mr. CASE, Mr. KILDEE, Mr. 

BERA, Miss GONZA ́LEZ-COLO ́N, Mrs. KIRKPATRICK, Mr. CLEAVER, Ms. 

LOIS FRANKEL of Florida, Mr. STANTON, Mr. SWALWELL, Mr. 

JEFFRIES, and Mr. YARMUTH) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committee on the Judiciary, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 


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A BILL 

To create protections for financial institutions that provide 

financial services to cannabis-related legitimate 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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS; PURPOSE. 

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

5 ‘‘Secure And Fair Enforcement Banking Act of 2021’’ or 

6 the ‘‘SAFE Banking Act of 2021’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents; purpose. 

Sec. 2. Safe harbor for depository institutions. 

Sec. 3. Protections for ancillary businesses. 

Sec. 4. Protections under Federal law. 

Sec. 5. Rules of construction. 

Sec. 6. Requirements for filing suspicious activity reports. 

Sec. 7. Guidance and examination procedures. 

Sec. 8. Annual diversity and inclusion report. 

Sec. 9. GAO study on diversity and inclusion. 

Sec. 10. GAO study on effectiveness of certain reports on finding certain persons. 

Sec. 11. Application of this Act with respect to hemp-related legitimate businesses and hemp-related service providers. 

Sec. 12. Banking services for hemp-related legitimate businesses and hemp-related service providers. 

Sec. 13. Requirements for deposit account termination requests and orders. 

Sec. 14. Definitions. 

9 (c) PURPOSE.—The purpose of this Act is to increase 

10 public safety by ensuring access to financial services to 

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1 viders and reducing the amount of cash at such busi2 nesses. 

3 SEC. 2. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 

4 (a) IN GENERAL.—A Federal banking regulator may 

5 not— 

6 (1) terminate or limit the deposit insur7 ance or share insurance of a depository institu8 tion under the Federal Deposit Insurance Act 

9 (12 U.S.C. 1811 et seq.), the Federal Credit 

10 Union Act (12 U.S.C. 1751 et seq.), or take 

11 any other adverse action against a depository 

12 institution under section 8 of the Federal De13 posit Insurance Act (12 U.S.C. 1818) solely be14 cause the depository institution provides or has 

15 provided financial services to a cannabis-related 

16 legitimate business or service provider; 

17 (2) prohibit, penalize, or otherwise discour18 age a depository institution from providing fi19 nancial services to a cannabis-related legitimate 

20 business or service provider or to a State, polit21 ical subdivision of a State, or Indian Tribe that 

22 exercises jurisdiction over cannabis-related le23 gitimate businesses; 

24 (3) recommend, incentivize, or encourage a 

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1 ices to an account holder, or to downgrade or 

2 cancel the financial services offered to an ac3 count holder solely because— 

4 (A) the account holder is a cannabis5 related legitimate business or service pro6 vider, or is an employee, owner, or oper7 ator of a cannabis-related legitimate busi8 ness or service provider; 

9 (B) the account holder later becomes 

10 an employee, owner, or operator of a can11 nabis-related legitimate business or service 

12 provider; or 

13 (C) the depository institution was not 

14 aware that the account holder is an em15 ployee, owner, or operator of a cannabis-re16 lated legitimate business or service pro17 vider; 

18 (4) take any adverse or corrective super19 visory action on a loan made to— 

20 (A) a cannabis-related legitimate busi21 ness or service provider, solely because the 

22 business is a cannabis-related legitimate 

23 business or service provider; 

24 (B) an employee, owner, or operator 

25 of a cannabis-related legitimate business or 


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1 service provider, solely because the em2 ployee, owner, or operator is employed by, 

3 owns, or operates a cannabis-related legiti4 mate business or service provider, as appli5 cable; or 

6 (C) an owner or operator of real es7 tate or equipment that is leased to a can8 nabis-related legitimate business or service 

9 provider, solely because the owner or oper10 ator of the real estate or equipment leased 

11 the equipment or real estate to a cannabis12 related legitimate business or service pro13 vider, as applicable; or 

14 (5) prohibit or penalize a depository insti15 tution (or entity performing a financial service 

16 for or in association with a depository institu17 tion) for, or otherwise discourage a depository 

18 institution (or entity performing a financial 

19 service for or in association with a depository 

20 institution) from, engaging in a financial service 

21 for a cannabis-related legitimate business or 

22 service provider. 

23 (b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI24 TUTIONS.—Subsection (a) shall apply to an institution apVerDate Sep 11 2014 21:33 Apr 16, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1996.IH H1996

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1 plying for a depository institution charter to the same ex2 tent as such subsection applies to a depository institution. 

3 SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES. 

4 For the purposes of sections 1956 and 1957 of title 

5 18, United States Code, and all other provisions of Fed6 eral law, the proceeds from a transaction involving activi7 ties of a cannabis-related legitimate business or service 

8 provider shall not be considered proceeds from an unlawful 

9 activity solely because— 

10 (1) the transaction involves proceeds from a 

11 cannabis-related legitimate business or service pro12 vider; or 

13 (2) the transaction involves proceeds from— 

14 (A) cannabis-related activities described in 

15 section 14(4)(B) conducted by a cannabis-re16 lated legitimate business; or 

17 (B) activities described in section 

18 14(13)(A) conducted by a service provider. 

19 SEC. 4. PROTECTIONS UNDER FEDERAL LAW. 

20 (a) IN GENERAL.—With respect to providing a finan21 cial service to a cannabis-related legitimate business 

22 (where such cannabis-related legitimate business operates 

23 within a State, political subdivision of a State, or Indian 

24 country that allows the cultivation, production, manufac25 ture, sale, transportation, display, dispensing, distribution, 


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1 or purchase of cannabis pursuant to a law or regulation 

2 of such State, political subdivision, or Indian Tribe that 

3 has jurisdiction over the Indian country, as applicable) or 

4 a service provider (wherever located), a depository institu5 tion, entity performing a financial service for or in associa6 tion with a depository institution, or insurer that provides 

7 a financial service to a cannabis-related legitimate busi8 ness or service provider, and the officers, directors, and 

9 employees of that depository institution, entity, or insurer 

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

11 regulation— 

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

13 or 

14 (2) for further investing any income derived 

15 from such a financial service. 

16 (b) PROTECTIONS FOR FEDERAL RESERVE BANKS

17 AND FEDERAL HOME LOAN BANKS.—With respect to 

18 providing a service to a depository institution that pro19 vides a financial service to a cannabis-related legitimate 

20 business (where such cannabis-related legitimate business 

21 operates within a State, political subdivision of a State, 

22 or Indian country that allows the cultivation, production, 

23 manufacture, sale, transportation, display, dispensing, dis24 tribution, or purchase of cannabis pursuant to a law or 

25 regulation of such State, political subdivision, or Indian 


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1 Tribe that has jurisdiction over the Indian country, as ap2 plicable) or service provider (wherever located), a Federal 

3 reserve bank or Federal Home Loan Bank, and the offi4 cers, directors, and employees of the Federal reserve bank 

5 or Federal Home Loan Bank, may not be held liable pur6 suant to any Federal law or regulation— 

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

8 (2) for further investing any income derived 

9 from such a service. 

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

11 engaging in the business of insurance within a State, polit12 ical subdivision of a State, or Indian country that allows 

13 the cultivation, production, manufacture, sale, transpor14 tation, display, dispensing, distribution, or purchase of 

15 cannabis pursuant to a law or regulation of such State, 

16 political subdivision, or Indian Tribe that has jurisdiction 

17 over the Indian country, as applicable, an insurer that en18 gages in the business of insurance with a cannabis-related 

19 legitimate business or service provider or who otherwise 

20 engages with a person in a transaction permissible under 

21 State law related to cannabis, and the officers, directors, 

22 and employees of that insurer may not be held liable pur23 suant to any Federal law or regulation— 

24 (1) solely for engaging in the business of insur25 ance; or 


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1 (2) for further investing any income derived 

2 from the business of insurance. 

3 (d) FORFEITURE.— 

4 (1) DEPOSITORY INSTITUTIONS.—A depository 

5 institution that has a legal interest in the collateral 

6 for a loan or another financial service provided to an 

7 owner, employee, or operator of a cannabis-related 

8 legitimate business or service provider, or to an 

9 owner or operator of real estate or equipment that 

10 is leased or sold to a cannabis-related legitimate 

11 business or service provider, shall not be subject to 

12 criminal, civil, or administrative forfeiture of that 

13 legal interest pursuant to any Federal law for pro14 viding such loan or other financial service. 

15 (2) FEDERAL RESERVE BANKS AND FEDERAL

16 HOME LOAN BANKS.—A Federal reserve bank or 

17 Federal Home Loan Bank that has a legal interest 

18 in the collateral for a loan or another financial serv19 ice provided to a depository institution that provides 

20 a financial service to a cannabis-related legitimate 

21 business or service provider, or to an owner or oper22 ator of real estate or equipment that is leased or 

23 sold to a cannabis-related legitimate business or 

24 service provider, shall not be subject to criminal, 

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1 est pursuant to any Federal law for providing such 

2 loan or other financial service. 

3 SEC. 5. RULES OF CONSTRUCTION. 

4 (a) NO REQUIREMENT TO PROVIDE FINANCIAL

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

6 institution, entity performing a financial service for or in 

7 association with a depository institution, or insurer to pro8 vide financial services to a cannabis-related legitimate 

9 business, service provider, or any other business. 

10 (b) GENERAL EXAMINATION, SUPERVISORY, AND

11 ENFORCEMENT AUTHORITY.—Nothing in this Act may be 

12 construed in any way as limiting or otherwise restricting 

13 the general examination, supervisory, and enforcement au14 thority of the Federal banking regulators, provided that 

15 the basis for any supervisory or enforcement action is not 

16 the provision of financial services to a cannabis-related le17 gitimate business or service provider. 

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

19 shall interfere with the regulation of the business of insur20 ance in accordance with the Act of March 9, 1945 (59 

21 Stat. 33, chapter 20; 15 U.S.C. 1011 et seq.) (commonly 

22 known as the ‘‘McCarran-Ferguson Act’’) and the Dodd23 Frank Wall Street Reform and Consumer Protection Act 

24 (12 U.S.C. 5301 et seq.). 


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1 SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 

2 REPORTS. 

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

4 amended by adding at the end the following: 

5 ‘‘(5) REQUIREMENTS FOR CANNABIS-RELATED

6 LEGITIMATE BUSINESSES.— 

7 ‘‘(A) IN GENERAL.—With respect to a fi8 nancial institution or any director, officer, em9 ployee, or agent of a financial institution that 

10 reports a suspicious transaction pursuant to 

11 this subsection, if the reason for the report re12 lates to a cannabis-related legitimate business 

13 or service provider, the report shall comply with 

14 appropriate guidance issued by the Financial 

15 Crimes Enforcement Network. Not later than 

16 the end of the 180-day period beginning on the 

17 date of enactment of this paragraph, the Sec18 retary shall update the February 14, 2014, 

19 guidance titled ‘BSA Expectations Regarding 

20 Marijuana-Related Businesses’ (FIN–2014– 

21 G001) to ensure that the guidance is consistent 

22 with the purpose and intent of the SAFE 

23 Banking Act of 2021 and does not significantly 

24 inhibit the provision of financial services to a 

25 cannabis-related legitimate business or service 

26 provider in a State, political subdivision of a 


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1 State, or Indian country that has allowed the 

2 cultivation, production, manufacture, transpor3 tation, display, dispensing, distribution, sale, or 

4 purchase of cannabis pursuant to law or regula5 tion of such State, political subdivision, or In6 dian Tribe that has jurisdiction over the Indian 

7 country. 

8 ‘‘(B) DEFINITIONS.—For purposes of this 

9 paragraph: 

10 ‘‘(i) CANNABIS.—The term ‘cannabis’ 

11 has the meaning given the term ‘mari12 huana’ in section 102 of the Controlled 

13 Substances Act (21 U.S.C. 802). 

14 ‘‘(ii) CANNABIS-RELATED LEGITIMATE

15 BUSINESS.—The term ‘cannabis-related le16 gitimate business’ has the meaning given 

17 that term in section 14 of the SAFE 

18 Banking Act of 2021. 

19 ‘‘(iii) INDIAN COUNTRY.—The term 

20 ‘Indian country’ has the meaning given 

21 that term in section 1151 of title 18. 

22 ‘‘(iv) INDIAN TRIBE.—The term ‘In23 dian Tribe’ has the meaning given that 

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1 ognized Indian Tribe List Act of 1994 (25 

2 U.S.C. 479a). 

3 ‘‘(v) FINANCIAL SERVICE.—The term 

4 ‘financial service’ has the meaning given 

5 that term in section 14 of the SAFE 

6 Banking Act of 2021. 

7 ‘‘(vi) SERVICE PROVIDER.—The term 

8 ‘service provider’ has the meaning given 

9 that term in section 14 of the SAFE 

10 Banking Act of 2021. 

11 ‘‘(vii) STATE.—The term ‘State’ 

12 means each of the several States, the Dis13 trict of Columbia, the Commonwealth of 

14 Puerto Rico, and any territory or posses15 sion of the United States.’’. 

16 SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 

17 Not later than 180 days after the date of enactment 

18 of this Act, the Financial Institutions Examination Coun19 cil shall develop uniform guidance and examination proce20 dures for depository institutions that provide financial 

21 services to cannabis-related legitimate businesses and 

22 service providers. 

23 SEC. 8. ANNUAL DIVERSITY AND INCLUSION REPORT. 

24 The Federal banking regulators shall issue an annual 

25 report to Congress containing— 


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1 (1) information and data on the availability of 

2 access to financial services for minority-owned and 

3 women-owned cannabis-related legitimate businesses; 

4 and 

5 (2) any regulatory or legislative recommenda6 tions for expanding access to financial services for 

7 minority-owned and women-owned cannabis-related 

8 legitimate businesses. 

9 SEC. 9. GAO STUDY ON DIVERSITY AND INCLUSION. 

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

11 States shall carry out a study on the barriers to market12 place entry, including in the licensing process, and the ac13 cess to financial services for potential and existing minor14 ity-owned and women-owned cannabis-related legitimate 

15 businesses. 

16 (b) REPORT.—The Comptroller General shall issue a 

17 report to the Congress— 

18 (1) containing all findings and determinations 

19 made in carrying out the study required under sub20 section (a); and 

21 (2) containing any regulatory or legislative rec22 ommendations for removing barriers to marketplace 

23 entry, including in the licensing process, and ex24 panding access to financial services for potential and 


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1 existing minority-owned and women-owned cannabis2 related legitimate businesses. 

3 SEC. 10. GAO STUDY ON EFFECTIVENESS OF CERTAIN RE4 PORTS ON FINDING CERTAIN PERSONS. 

5 Not later than 2 years after the date of the enact6 ment of this Act, the Comptroller General of the United 

7 States shall carry out a study on the effectiveness of re8 ports on suspicious transactions filed pursuant to section 

9 5318(g) of title 31, United States Code, at finding individ10 uals or organizations suspected or known to be engaged 

11 with transnational criminal organizations and whether any 

12 such engagement exists in a State, political subdivision, 

13 or Indian Tribe that has jurisdiction over Indian country 

14 that allows the cultivation, production, manufacture, sale, 

15 transportation, display, dispensing, distribution, or pur16 chase of cannabis. The study shall examine reports on sus17 picious transactions as follows: 

18 (1) During the period of 2014 until the date of 

19 the enactment of this Act, reports relating to mari20 juana-related businesses. 

21 (2) During the 1-year period after date of the 

22 enactment of this Act, reports relating to cannabis23 related legitimate businesses. 


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1 SEC. 11. APPLICATION OF THIS ACT WITH RESPECT TO 

2 HEMP-RELATED LEGITIMATE BUSINESSES 

3 AND HEMP-RELATED SERVICE PROVIDERS. 

4 (a) IN GENERAL.—The provisions of this Act (other 

5 than sections 6 and 10) shall apply with respect to hemp6 related legitimate businesses and hemp-related service pro7 viders in the same manner as such provisions apply with 

8 respect to cannabis-related legitimate businesses and serv9 ice providers. 

10 (b) DEFINITIONS.—In this section: 

11 (1) CBD.—The term ‘‘CBD’’ means 

12 cannabidiol. 

13 (2) HEMP.—The term ‘‘hemp’’ has the meaning 

14 given that term under section 297A of the Agricul15 tural Marketing Act of 1946 (7 U.S.C. 1639o). 

16 (3) HEMP-RELATED LEGITIMATE BUSINESS.— 

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

18 a manufacturer, producer, or any person or company 

19 that— 

20 (A) engages in any activity described in 

21 subparagraph (B) in conformity with the Agri22 cultural Improvement Act of 2018 (Public Law 

23 115–334) and the regulations issued to imple24 ment such Act by the Department of Agri25 culture, where applicable, and the law of a 


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1 State or political subdivision thereof or Indian 

2 Tribe; and 

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

5 hemp-derived CBD products, and other hemp6 derived cannabinoid products, including culti7 vating, producing, extracting, manufacturing, 

8 selling, transporting, displaying, dispensing, dis9 tributing, or purchasing hemp, hemp-derived 

10 CBD products, and other hemp-derived 

11 cannabinoid products. 

12 (4) HEMP-RELATED SERVICE PROVIDER.—The 

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

14 (A) means a business, organization, or 

15 other person that— 

16 (i) sells goods or services to a hemp17 related legitimate business; or 

18 (ii) provides any business services, in19 cluding the sale or lease of real or any 

20 other property, legal or other licensed serv21 ices, or any other ancillary service, relating 

22 to hemp, hemp-derived CBD products, or 

23 other hemp-derived cannabinoid products; 

24 and 


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1 (B) does not include a business, organiza2 tion, or other person that participates in any 

3 business or organized activity that involves han4 dling hemp, hemp-derived CBD products, or 

5 other hemp-derived cannabinoid products, in6 cluding cultivating, producing, manufacturing, 

7 selling, transporting, displaying, dispensing, dis8 tributing, or purchasing hemp, hemp-derived 

9 CBD products, and other hemp-derived 

10 cannabinoid products. 

11 SEC. 12. BANKING SERVICES FOR HEMP-RELATED LEGITI12 MATE BUSINESSES AND HEMP-RELATED 

13 SERVICE PROVIDERS. 

14 (a) FINDINGS.—The Congress finds that— 

15 (1) the Agriculture Improvement Act of 2018 

16 (Public Law 115–334) legalized hemp by removing 

17 it from the definition of ‘‘marihuana’’ under the 

18 Controlled Substances Act; 

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

20 businesses (including producers, manufacturers, and 

21 retailers) continue to have difficulty gaining access 

22 to banking products and services; and 

23 (3) businesses involved in the sale of hemp-de24 rived CBD products are particularly affected, due to 

25 confusion about the legal status of such products. 


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1 (b) FEDERAL BANKING REGULATORS’ HEMP BANK2 ING GUIDANCE.—Not later than the end of the 90-day pe3 riod beginning on the date of enactment of this Act, the 

4 Federal banking regulators shall update their existing 

5 guidance, as applicable, regarding the provision of finan6 cial services to hemp-related legitimate businesses and 

7 hemp-related service providers to address— 

8 (1) compliance with financial institutions’ exist9 ing obligations under Federal laws and imple10 menting regulations determined relevant by the Fed11 eral banking regulators, including subchapter II of 

12 chapter 53 of title 31, United States Code, and its 

13 implementing regulation in conformity with this Act 

14 and the Department of Agriculture’s rules regulating 

15 domestic hemp production (7 C.F.R. 990); 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 (c) DEFINITIONS.—In this section: 

21 (1) FINANCIAL INSTITUTION.—The term ‘‘fi22 nancial institution’’— 

23 (A) has the meaning given that term under 

24 section 5312(a) of title 31, United States Code; 

25 and 


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1 (B) includes a bank holding company, as 

2 defined under section 2(a) of the Bank Holding 

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

4 (2) HEMP TERMS.—The terms ‘‘CBD’’, 

5 ‘‘hemp’’, ‘‘hemp-related legitimate business’’, and 

6 ‘‘hemp-related service provider’’ have the meaning 

7 given those terms, respectively, under section 11. 

8 SEC. 13. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI9 NATION REQUESTS AND ORDERS. 

10 (a) TERMINATION REQUESTS OR ORDERS MUST BE

11 VALID.— 

12 (1) IN GENERAL.—An appropriate Federal 

13 banking agency may not formally or informally re14 quest or order a depository institution to terminate 

15 a specific customer account or group of customer ac16 counts or to otherwise restrict or discourage a de17 pository institution from entering into or maintain18 ing a banking relationship with a specific customer 

19 or group of customers unless— 

20 (A) the agency has a valid reason for such 

21 request or order; and 

22 (B) such reason is not based solely on rep23 utation risk. 

24 (2) TREATMENT OF NATIONAL SECURITY

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1 cy believes a specific customer or group of customers 

2 is, or is acting as a conduit for, an entity which— 

3 (A) poses a threat to national security; 

4 (B) is involved in terrorist financing; 

5 (C) is an agency of the Government of 

6 Iran, North Korea, Syria, or any country listed 

7 from time to time on the State Sponsors of 

8 Terrorism list; 

9 (D) is located in, or is subject to the juris10 diction of, any country specified in subpara11 graph (C); or 

12 (E) does business with any entity described 

13 in subparagraph (C) or (D), unless the appro14 priate Federal banking agency determines that 

15 the customer or group of customers has used 

16 due diligence to avoid doing business with any 

17 entity described in subparagraph (C) or (D), 

18 such belief shall satisfy the requirement under para19 graph (1). 

20 (b) NOTICE REQUIREMENT.— 

21 (1) IN GENERAL.—If an appropriate Federal 

22 banking agency formally or informally requests or 

23 orders a depository institution to terminate a spe24 cific customer account or a group of customer ac25 counts, the agency shall— 


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1 (A) provide such request or order to the 

2 institution in writing; and 

3 (B) accompany such request or order with 

4 a written justification for why such termination 

5 is needed, including any specific laws or regula6 tions the agency believes are being violated by 

7 the customer or group of customers, if any. 

8 (2) JUSTIFICATION REQUIREMENT.—A jus9 tification described under paragraph (1)(B) may not 

10 be based solely on the reputation risk to the deposi11 tory institution. 

12 (c) CUSTOMER NOTICE.— 

13 (1) NOTICE REQUIRED.—Except as provided 

14 under paragraph (2) or as otherwise prohibited from 

15 being disclosed by law, if an appropriate Federal 

16 banking agency orders a depository institution to 

17 terminate a specific customer account or a group of 

18 customer accounts, the depository institution shall 

19 inform the specific customer or group of customers 

20 of the justification for the customer’s account termi21 nation described under subsection (b). 

22 (2) NOTICE PROHIBITED.— 

23 (A) NOTICE PROHIBITED IN CASES OF NA24 TIONAL SECURITY.—If an appropriate Federal 

25 banking agency requests or orders a depository 


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1 institution to terminate a specific customer ac2 count or a group of customer accounts based on 

3 a belief that the customer or customers pose a 

4 threat to national security, or are otherwise de5 scribed under subsection (a)(2), neither the de6 pository institution nor the appropriate Federal 

7 banking agency may inform the customer or 

8 customers of the justification for the customer’s 

9 account termination. 

10 (B) NOTICE PROHIBITED IN OTHER

11 CASES.—If an appropriate Federal banking 

12 agency determines that the notice required 

13 under paragraph (1) may interfere with an au14 thorized criminal investigation, neither the de15 pository institution nor the appropriate Federal 

16 banking agency may inform the specific cus17 tomer or group of customers of the justification 

18 for the customer’s account termination. 

19 (d) REPORTING REQUIREMENT.—Each appropriate 

20 Federal banking agency shall issue an annual report to 

21 the Congress stating— 

22 (1) the aggregate number of specific customer 

23 accounts that the agency requested or ordered a de24 pository institution to terminate during the previous 

25 year; and 


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1 (2) the legal authority on which the agency re2 lied in making such requests and orders and the fre3 quency on which the agency relied on each such au4 thority. 

5 (e) DEFINITIONS.—For purposes of this section: 

6 (1) APPROPRIATE FEDERAL BANKING AGEN7 CY.—The term ‘‘appropriate Federal banking agen8 cy’’ means— 

9 (A) the appropriate Federal banking agen10 cy, as defined under section 3 of the Federal 

11 Deposit Insurance Act (12 U.S.C. 1813); and 

12 (B) the National Credit Union Administra13 tion, in the case of an insured credit union. 

14 (2) DEPOSITORY INSTITUTION.—The term ‘‘de15 pository institution’’ means— 

16 (A) a depository institution, as defined 

17 under section 3 of the Federal Deposit Insur18 ance Act (12 U.S.C. 1813); and 

19 (B) an insured credit union. 

20 SEC. 14. DEFINITIONS. 

21 In this Act: 

22 (1) BUSINESS OF INSURANCE.—The term 

23 ‘‘business of insurance’’ has the meaning given such 

24 term in section 1002 of the Dodd-Frank Wall Street 


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1 Reform and Consumer Protection Act (12 U.S.C. 

2 5481). 

3 (2) CANNABIS.—The term ‘‘cannabis’’ has the 

4 meaning given the term ‘‘marihuana’’ in section 102 

5 of the Controlled Substances Act (21 U.S.C. 802). 

6 (3) CANNABIS PRODUCT.—The term ‘‘cannabis 

7 product’’ means any article which contains cannabis, 

8 including an article which is a concentrate, an edi9 ble, a tincture, a cannabis-infused product, or a top10 ical. 

11 (4) CANNABIS-RELATED LEGITIMATE BUSI12 NESS.—The term ‘‘cannabis-related legitimate busi13 ness’’ means a manufacturer, producer, or any per14 son or company that— 

15 (A) engages in any activity described in 

16 subparagraph (B) pursuant to a law established 

17 by a State or a political subdivision of a State, 

18 as determined by such State or political subdivi19 sion; and 

20 (B) participates in any business or orga21 nized activity that involves handling cannabis or 

22 cannabis products, including cultivating, pro23 ducing, manufacturing, selling, transporting, 

24 displaying, dispensing, distributing, or pur25 chasing cannabis or cannabis products. 


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1 (5) DEPOSITORY INSTITUTION.—The term ‘‘de2 pository institution’’ means— 

3 (A) a depository institution as defined in 

4 section 3(c) of the Federal Deposit Insurance 

5 Act (12 U.S.C. 1813(c)); 

6 (B) a Federal credit union as defined in 

7 section 101 of the Federal Credit Union Act 

8 (12 U.S.C. 1752); or 

9 (C) a State credit union as defined in sec10 tion 101 of the Federal Credit Union Act (12 

11 U.S.C. 1752). 

12 (6) FEDERAL BANKING REGULATOR.—The 

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

14 Board of Governors of the Federal Reserve System, 

15 the Bureau of Consumer Financial Protection, the 

16 Federal Deposit Insurance Corporation, the Federal 

17 Housing Finance Agency, the Financial Crimes En18 forcement Network, the Office of Foreign Asset 

19 Control, the Office of the Comptroller of the Cur20 rency, the National Credit Union Administration, 

21 the Department of the Treasury, or any Federal 

22 agency or department that regulates banking or fi23 nancial services, as determined by the Secretary of 

24 the Treasury. 


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

2 service’’— 

3 (A) means a financial product or service, 

4 as defined in section 1002 of the Dodd-Frank 

5 Wall Street Reform and Consumer Protection 

6 Act (12 U.S.C. 5481), regardless if the cus7 tomer receiving the product or service is a con8 sumer or commercial entity; 

9 (B) means a financial product or service, 

10 or any combination of products and services, 

11 permitted to be provided by— 

12 (i) a national bank or a financial sub13 sidiary pursuant to the authority provided 

14 under— 

15 (I) the provision designated 

16 ‘‘Seventh’’ of section 5136 of the Re17 vised Statutes of the United States 

18 (12 U.S.C. 24); or 

19 (II) section 5136A of the Revised 

20 Statutes of the United States (12 

21 U.S.C. 24a); and 

22 (ii) a Federal credit union, pursuant 

23 to the authority provided under the Fed24 eral Credit Union Act; 

25 (C) includes the business of insurance; 


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1 (D) includes, whether performed directly or 

2 indirectly, the authorizing, processing, clearing, 

3 settling, billing, transferring for deposit, trans4 mitting, delivering, instructing to be delivered, 

5 reconciling, collecting, or otherwise effectuating 

6 or facilitating of payments or funds, where such 

7 payments or funds are made or transferred by 

8 any means, including by the use of credit cards, 

9 debit cards, other payment cards, or other ac10 cess devices, accounts, original or substitute 

11 checks, or electronic funds transfers; 

12 (E) includes acting as a money transmit13 ting business which directly or indirectly makes 

14 use of a depository institution in connection 

15 with effectuating or facilitating a payment for 

16 a cannabis-related legitimate business or service 

17 provider in compliance with section 5330 of 

18 title 31, United States Code, and any applicable 

19 State law; and 

20 (F) includes acting as an armored car 

21 service for processing and depositing with a de22 pository institution or a Federal reserve bank 

23 with respect to any monetary instruments (as 

24 defined under section 1956(c)(5) of title 18, 

25 United States Code. 


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1 (8) INDIAN COUNTRY.—The term ‘‘Indian coun2 try’’ has the meaning given that term in section 

3 1151 of title 18. 

4 (9) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

5 has the meaning given that term in section 102 of 

6 the Federally Recognized Indian Tribe List Act of 

7 1994 (25 U.S.C. 479a). 

8 (10) INSURER.—The term ‘‘insurer’’ has the 

9 meaning given that term under section 313(r) of 

10 title 31, United States Code. 

11 (11) MANUFACTURER.—The term ‘‘manufac12 turer’’ means a person who manufactures, com13 pounds, converts, processes, prepares, or packages 

14 cannabis or cannabis products. 

15 (12) PRODUCER.—The term ‘‘producer’’ means 

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

17 way facilitates the natural growth of cannabis. 

18 (13) SERVICE PROVIDER.—The term ‘‘service 

19 provider’’— 

20 (A) means a business, organization, or 

21 other person that— 

22 (i) sells goods or services to a can23 nabis-related legitimate business; or 

24 (ii) provides any business services, in25 cluding the sale or lease of real or any 


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1 other property, legal or other licensed serv2 ices, or any other ancillary service, relating 

3 to cannabis; and 

4 (B) does not include a business, organiza5 tion, or other person that participates in any 

6 business or organized activity that involves han7 dling cannabis or cannabis products, including 

8 cultivating, producing, manufacturing, selling, 

9 transporting, displaying, dispensing, distrib10 uting, or purchasing cannabis or cannabis prod11 ucts. 

12 (14) STATE.—The term ‘‘State’’ means each of 

13 the several States, the District of Columbia, the 

14 Commonwealth of Puerto Rico, and any territory or 

15 possession of the United States. 

Æ 


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