II 

118TH CONGRESS 

1ST SESSION S. 1323 

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 

APRIL 26, 2023 

Mr. MERKLEY (for himself, Mr. DAINES, Ms. ROSEN, Mr. CASSIDY, Mrs. 

GILLIBRAND, Ms. LUMMIS, Mr. SCHATZ, Ms. MURKOWSKI, Mr. MARKEY, 

Mr. CRAMER, Mr. LUJA ́N, Mr. SULLIVAN, Ms. CORTEZ MASTO, Mr. 

PAUL, Mr. KING, Ms. DUCKWORTH, Mr. FETTERMAN, Mr. WYDEN, Ms. 

SINEMA, Mr. PADILLA, Mr. DURBIN, Mr. WELCH, Mr. KELLY, Mr. BENNET, Mrs. MURRAY, Ms. SMITH, Ms. KLOBUCHAR, Ms. WARREN, Mr. 

KAINE, Ms. STABENOW, Mr. SANDERS, Mr. MENENDEZ, Mr. COONS, Mr. 

TESTER, Mr. WARNER, Mr. HEINRICH, Mr. HICKENLOOPER, Ms. 

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

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

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 Banking Act of 2023’’ or 

4 the ‘‘SAFE Banking Act of 2023’’. 

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 federally backed single-family mortgage loan. 

Sec. 10. Requirements for deposit account termination requests and orders. 

Sec. 11. Annual diversity and inclusion report. 

Sec. 12. GAO study on diversity and inclusion. 

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. 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 23:42 Apr 28, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1323.IS S1323

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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.—The term ‘‘de6 pository institution’’— 

7 (A) means— 

8 (i) a depository institution, as defined 

9 in section 3(c) of the Federal Deposit In10 surance Act (12 U.S.C. 1813(c)); 

11 (ii) a Federal credit union, as defined 

12 in section 101 of the Federal Credit Union 

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

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

15 section 101 of the Federal Credit Union 

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

17 (B) includes any minority depository insti18 tution, as defined in section 308 of the Finan19 cial Institutions Reform, Recovery, and En20 forcement Act of 1989 (12 U.S.C. 1463 note). 

21 (5) FEDERAL BANKING REGULATOR.—The 

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

23 Board of Governors of the Federal Reserve System, 

24 the Bureau of Consumer Financial Protection, the 

25 Federal Deposit Insurance Corporation, the Federal 


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1 Housing Finance Agency, the Office of the Comp2 troller of the Currency, the National Credit Union 

3 Administration, the Department of the Treasury (in4 cluding the Financial Crimes Enforcement Network 

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

6 Federal agency or department that regulates bank7 ing or financial services, as determined by the Sec8 retary of the Treasury. 

9 (6) FINANCIAL PRODUCT OR SERVICE.—The 

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

11 given the term in section 1002 of the Consumer Fi12 nancial Protection Act of 2010 (12 U.S.C. 5481). 

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

14 service’’— 

15 (A) means— 

16 (i) a financial product or service, re17 gardless of whether the customer receiving 

18 the product or service is a consumer or 

19 commercial entity; or 

20 (ii) a financial product or service, or 

21 any combination of products and services, 

22 permitted to be provided by— 

23 (I) a national bank or a financial 

24 subsidiary pursuant to the authority 

25 provided under— 


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1 (aa) the paragraph des2 ignated as the ‘‘Seventh’’ of sec3 tion 5136 of the Revised Statutes 

4 (12 U.S.C. 24); or 

5 (bb) section 5136A of the 

6 Revised Statutes (12 U.S.C. 

7 24a); 

8 (II) a Federal credit union, pur9 suant to the authority provided under 

10 the Federal Credit Union Act (12 

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

12 (III) a community development 

13 financial institution; and 

14 (B) includes— 

15 (i) the business of insurance; 

16 (ii) whether performed directly or in17 directly, the authorizing, processing, clear18 ing, settling, billing, transferring for de19 posit, transmitting, delivering, instructing 

20 to be delivered, reconciling, collecting, or 

21 otherwise effectuating or facilitating the 

22 payment of funds that are made or trans23 ferred by any means, including by the use 

24 of credit cards, debit cards, other payment 

25 cards, or other access devices, accounts, 


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1 original or substitute checks, or electronic 

2 funds transfers; 

3 (iii) acting as a money transmitting 

4 business that directly or indirectly makes 

5 use of a depository institution in connec6 tion with effectuating or facilitating a pay7 ment for a State-sanctioned marijuana 

8 business or service provider in compliance 

9 with section 5330 of title 31, United 

10 States Code, and any applicable State or 

11 Tribal law; and 

12 (iv) acting as an armored car service 

13 for processing and depositing with a depos14 itory institution or a Federal reserve bank 

15 with respect to any monetary instruments, 

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

17 United States Code. 

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

19 given the term in section 297A of the Agricultural 

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

21 (9) HEMP-RELATED LEGITIMATE BUSINESS.— 

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

23 a manufacturer, producer, or any person or company 

24 that— 


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1 (A) engages in any activity described in 

2 subparagraph (B) in conformity with the Agri3 culture Improvement Act of 2018 (Public Law 

4 115–334; 132 Stat. 4490), amendments made 

5 by that Act, and the regulations issued to im6 plement that Act by the Department of Agri7 culture, where applicable, and the law of a 

8 State, an Indian Tribe, or a political subdivision 

9 of a State; and 

10 (B) participates in any business or orga11 nized activity that involves handling hemp, 

12 hemp-derived CBD products, and other hemp13 derived cannabinoid products, including culti14 vating, producing, extracting, manufacturing, 

15 selling, transporting, displaying, dispensing, dis16 tributing, or purchasing hemp, hemp-derived 

17 CBD products, and other hemp-derived 

18 cannabinoid products. 

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

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

21 (A) means a business, organization, or 

22 other person that— 

23 (i) sells goods or services to a hemp24 related legitimate 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 hemp, hemp-derived CBD products, or 

6 other hemp-derived cannabinoid products; 

7 and 

8 (B) does not include a business, organiza9 tion, or other person that participates in any 

10 business or organized activity that involves han11 dling hemp, hemp-derived CBD products, or 

12 other hemp-derived cannabinoid products, in13 cluding cultivating, producing, manufacturing, 

14 selling, transporting, displaying, dispensing, dis15 tributing, or purchasing hemp, hemp-derived 

16 CBD products, and other hemp-derived 

17 cannabinoid products. 

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

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

20 section 102 of the Federally Recognized Indian 

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

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

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

24 United States Code. 


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1 (13) MANUFACTURER.—The term ‘‘manufac2 turer’’ means a person who manufactures, com3 pounds, converts, processes, prepares, or packages 

4 marijuana or marijuana products. 

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

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

7 102 of the Controlled Substances Act (21 U.S.C. 

8 802). 

9 (15) MARIJUANA PRODUCT.—The term ‘‘mari10 juana product’’ means any article that contains 

11 marijuana, including an article that is a concentrate, 

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

13 or a topical. 

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

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

16 way facilitates the natural growth of marijuana. 

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

18 provider’’— 

19 (A) means a business, organization, or 

20 other person that— 

21 (i) sells goods or services to a State22 sanctioned marijuana business; or 

23 (ii) provides any business services, in24 cluding the sale or lease of real or any 

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1 ices, or any other ancillary service, relating 

2 to a State-sanctioned marijuana business; 

3 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 marijuana or marijuana products, includ8 ing cultivating, producing, manufacturing, sell9 ing, transporting, displaying, dispensing, dis10 tributing, or purchasing marijuana or mari11 juana products. 

12 (18) 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. 

16 (19) STATE-SANCTIONED MARIJUANA BUSI17 NESS.—The term ‘‘State-sanctioned marijuana busi18 ness’’ means a manufacturer, producer, or any per19 son that— 

20 (A) engages in any activity described in 

21 subparagraph (B) pursuant to a law established 

22 by a State, an Indian Tribe, or a political sub23 division of a State, as determined by such 

24 State, Indian Tribe, or political subdivision; and 


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1 (B) participates in any business or orga2 nized activity that involves handling marijuana 

3 or marijuana products, including cultivating, 

4 producing, manufacturing, selling, transporting, 

5 displaying, dispensing, distributing, or pur6 chasing marijuana or marijuana products. 

7 SEC. 3. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 

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

9 not— 

10 (1) terminate or limit the deposit insurance or 

11 share insurance of a depository institution under the 

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

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

14 1751 et seq.) or take any other adverse action 

15 against a depository institution under the Federal 

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

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

18 seq.) solely because the depository institution pro19 vides or has provided financial services to a State20 sanctioned marijuana business or service provider; 

21 (2) prohibit, penalize, or otherwise discourage a 

22 depository institution from providing financial serv23 ices to— 

24 (A) a State-sanctioned marijuana business 

25 or service provider solely because the business 


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1 or service provider is a State-sanctioned mari2 juana business or service provider; or 

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

4 subdivision of a State solely because that entity 

5 exercises jurisdiction over State-sanctioned 

6 marijuana businesses; 

7 (3) recommend, incentivize, or encourage a de8 pository institution not to offer financial services to 

9 an account holder, or to downgrade or cancel the fi10 nancial services offered to an account holder, solely 

11 because— 

12 (A) the account holder is a State-sanc13 tioned marijuana business or service provider, 

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

15 State-sanctioned marijuana business or service 

16 provider; 

17 (B) the account holder later becomes an 

18 employee, owner, or operator of a State-sanc19 tioned marijuana business or service provider; 

20 or 

21 (C) the depository institution was not 

22 aware, after conducting sufficient risk-based 

23 customer due diligence in accordance with ap24 plicable requirements, that the account holder is 

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1 sanctioned marijuana business or service pro2 vider; 

3 (4) take any adverse or corrective supervisory 

4 action on a loan made to— 

5 (A) a State-sanctioned marijuana business 

6 or service provider, solely because the business 

7 is a State-sanctioned marijuana business or 

8 service provider; 

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

10 State-sanctioned marijuana business or service 

11 provider, solely because the employee, owner, or 

12 operator is employed by, owns, or operates a 

13 State-sanctioned marijuana business or service 

14 provider, as applicable; or 

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

16 equipment that is leased to a State-sanctioned 

17 marijuana business or service provider, solely 

18 because the owner or operator of the real estate 

19 or equipment leased the equipment or real es20 tate to a State-sanctioned marijuana business 

21 or service provider, as applicable; or 

22 (5) prohibit or penalize a depository institution 

23 (or entity performing a financial service for or in as24 sociation with a depository institution) for, or other25 wise discourage a depository institution (or entity 


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1 performing a financial service for or in association 

2 with a depository institution) from, engaging in a fi3 nancial service for a State-sanctioned marijuana 

4 business or service provider solely because the busi5 ness or service provider is a State-sanctioned mari6 juana business or service provider. 

7 (b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI8 TUTIONS.—Subsection (a) shall apply to an institution ap9 plying for a depository institution charter to the same ex10 tent as such subsection applies to a depository institution. 

11 SEC. 4. PROTECTIONS FOR PROVIDING SERVICES TO 

12 STATE-SANCTIONED MARIJUANA BUSI13 NESSES. 

14 For the purposes of sections 1956 and 1957 of title 

15 18, United States Code, and all other provisions of Fed16 eral law, the proceeds from marijuana-related activities of 

17 a State-sanctioned marijuana business or service provider 

18 that conducts all of its marijuana-related activity in com19 pliance with the marijuana-related law of the State, Indian 

20 Tribe, or political subdivision of the State shall not be con21 sidered proceeds from an unlawful activity solely be22 cause— 

23 (1) the transaction involves proceeds from a 

24 State-sanctioned marijuana business or service pro25 vider; or 


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1 (2) the transaction involves proceeds from— 

2 (A) marijuana-related activities described 

3 in section 2(19)(B) conducted by a State-sanc4 tioned marijuana business; or 

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

6 conducted by a service provider. 

7 SEC. 5. PROTECTIONS UNDER FEDERAL LAW. 

8 (a) IN GENERAL.—With respect to providing a finan9 cial service to a State-sanctioned marijuana business 

10 (where such State-sanctioned marijuana business operates 

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

12 of a State that allows the cultivation, production, manu13 facture, sale, transportation, display, dispensing, distribu14 tion, or purchase of marijuana pursuant to a law or regu15 lation of such State, Indian Tribe, or political subdivision, 

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

17 depository institution, an entity performing a financial 

18 service for or in association with a depository institution, 

19 a community development financial institution, or an in20 surer that provides a financial service to a State-sanc21 tioned marijuana business or service provider, and the of22 ficers, directors, employees, and agents of that depository 

23 institution, entity, community development financial insti24 tution, or insurer may not be held liable pursuant to any 

25 Federal law or regulation— 


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

2 or 

3 (2) for further investing any income derived 

4 from such a financial service. 

5 (b) PROTECTIONS FOR FEDERAL RESERVE BANKS

6 AND FEDERAL HOME LOAN BANKS.—With respect to 

7 providing a service to a depository institution that pro8 vides a financial service to a State-sanctioned marijuana 

9 business (where such State-sanctioned marijuana business 

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

11 subdivision of a State that allows the cultivation, produc12 tion, manufacture, sale, transportation, display, dis13 pensing, distribution, or purchase of marijuana pursuant 

14 to a law or regulation of such State, Indian Tribe, or polit15 ical subdivision, as applicable) or service provider (wher16 ever located), a Federal reserve bank or Federal Home 

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

18 the Federal reserve bank or Federal Home Loan Bank, 

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

20 regulation— 

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

22 (2) for further investing any income derived 

23 from such a service. 

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

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


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1 Indian Tribe, or a political subdivision of a State that al2 lows the cultivation, production, manufacture, sale, trans3 portation, display, dispensing, distribution, or purchase of 

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

5 Indian Tribe, or political subdivision, as applicable, an in6 surer that engages in the business of insurance with a 

7 State-sanctioned marijuana business or service provider or 

8 that otherwise engages with a person in a transaction per9 missible pursuant to a law (including regulations) of such 

10 State, Indian Tribe, or political subdivision related to 

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

12 that insurer, may not be held liable pursuant to any Fed13 eral law or regulation— 

14 (1) solely for engaging in the business of insur15 ance; or 

16 (2) for further investing any income derived 

17 from the business of insurance. 

18 (d) FORFEITURE.— 

19 (1) DEPOSITORY INSTITUTIONS AND COMMU20 NITY DEVELOPMENT FINANCIAL INSTITUTIONS.—A 

21 depository institution or community development fi22 nancial institution that has a legal interest in the 

23 collateral for a loan or another financial service pro24 vided to an owner, employee, or operator of a State25 sanctioned marijuana business or service provider, or 


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1 to an owner or operator of real estate or equipment 

2 that is leased or sold to a State-sanctioned mari3 juana business or service provider, shall not be sub4 ject to criminal, civil, or administrative forfeiture of 

5 that legal interest pursuant to any Federal law sole6 ly for providing such loan or other financial service. 

7 (2) FEDERAL RESERVE BANKS AND FEDERAL

8 HOME LOAN BANKS.—A Federal reserve bank or 

9 Federal Home Loan Bank that has a legal interest 

10 in the collateral for a loan or another financial serv11 ice provided to a depository institution that provides 

12 a financial service to a State-sanctioned marijuana 

13 business or service provider, or to an owner or oper14 ator of real estate or equipment that is leased or 

15 sold to a State-sanctioned marijuana business or 

16 service provider, shall not be subject to criminal, 

17 civil, or administrative forfeiture of that legal inter18 est pursuant to any Federal law for providing such 

19 loan or other financial service. 

20 (3) FEDERAL NATIONAL MORTGAGE ASSOCIA21 TION, FEDERAL HOME LOAN MORTGAGE CORPORA22 TION, AND FEDERAL AGENCIES MAKING, INSURING, 

23 OR GUARANTEEING MORTGAGE LOANS OR SECURI24 TIES.—The Federal National Mortgage Association, 

25 the Federal Home Loan Mortgage Corporation, and 


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1 any Federal agency that has a legal interest in the 

2 collateral for a residential mortgage loan, including 

3 individual units of condominiums and cooperatives, 

4 provided that the collateral is a property designed 

5 principally for the occupancy of 1 to 4 families and 

6 underwritten, in whole or in part, based on income 

7 from a State-sanctioned marijuana business or serv8 ice provider, shall not be subject to criminal, civil, or 

9 administrative forfeiture of that legal interest pursu10 ant to any Federal law for providing, insuring, guar11 anteeing, purchasing, securitizing, or guaranteeing 

12 payments from a security based on such loan. 

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

14 nondepository lender that makes a federally backed 

15 mortgage loan, as defined in section 9(a), and any 

16 person who otherwise has a legal interest in such a 

17 loan or in the collateral of the loan, including indi18 vidual units of condominiums and cooperatives, pro19 vided that the collateral is a property designed prin20 cipally for the occupancy of 1 to 4 families and un21 derwritten, in whole or in part, based on income 

22 from a State-sanctioned marijuana business or serv23 ice provider, shall not be subject to criminal, civil, or 

24 administrative forfeiture of that legal interest pursu25 ant to any Federal law for providing, purchasing, 


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1 securitizing, accepting, and making payments related 

2 to such federally backed mortgage loan solely be3 cause loan payments or underwriting are based on 

4 income that is in whole or in part from a State-sanc5 tioned marijuana business or service provider. 

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

7 ‘‘collateral’’ does not include marijuana or a mari8 juana product. 

9 SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 

10 REPORTS. 

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

12 amended— 

13 (1) by redesignating paragraph (11) as para14 graph (12); and 

15 (2) by inserting after paragraph (10) the fol16 lowing 

17 ‘‘(11) REQUIREMENTS FOR STATE-SANCTIONED

18 MARIJUANA BUSINESSES.— 

19 ‘‘(A) IN GENERAL.—With respect to a fi20 nancial institution, or any director, officer, em21 ployee, or agent of a financial institution, that 

22 reports a suspicious transaction pursuant to 

23 this subsection, if the reason for the report re24 lates to a State-sanctioned marijuana business 

25 or service provider, the report shall comply with 


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1 appropriate guidance issued by the Secretary of 

2 the Treasury. Not later than the end of the 

3 180-day period beginning on the date of enact4 ment of the Secure And Fair Enforcement 

5 Banking Act of 2023, the Secretary shall 

6 amend the February 14, 2014, guidance titled 

7 ‘BSA Expectations Regarding Marijuana-Re8 lated Businesses’ (FIN–2014–G001) or issue 

9 new guidance to ensure consistency with the 

10 purpose and intent of the Secure And Fair En11 forcement Banking Act of 2023, and the 

12 amendments made by that Act, and that such 

13 guidance ensures that a financial institution, 

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

15 a financial institution, continues to report sus16 picious transactions pursuant to this subsection, 

17 as applicable, relating to State-sanctioned mari18 juana businesses and service providers to pre19 serve the ability of the Financial Crimes En20 forcement Network to prevent and combat illicit 

21 activity. 

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

23 ‘‘(i) FINANCIAL SERVICE; SERVICE

24 PROVIDER; STATE; STATE-SANCTIONED

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1 cial service’, ‘service provider’, ‘State’, and 

2 ‘State-sanctioned marijuana business’ have 

3 the meanings given the terms in section 2 

4 of the SAFE Banking Act of 2023. 

5 ‘‘(ii) INDIAN COUNTRY.—The term 

6 ‘Indian country’ has the meaning given the 

7 term in section 1151 of title 18. 

8 ‘‘(iii) INDIAN TRIBE.—The term ‘In9 dian Tribe’ has the meaning given the 

10 term ‘Indian tribe’ in section 102 of the 

11 Federally Recognized Indian Tribe List 

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

13 ‘‘(iv) MARIJUANA.—The term ‘mari14 juana’ has the meaning given the term 

15 ‘marihuana’ in section 102 of the Con16 trolled Substances Act (21 U.S.C. 802).’’. 

17 SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 

18 (a) UNIFORM GUIDANCE AND EXAMINATION PROCE19 DURES.—Not later than 180 days after the date of enact20 ment of this Act, the Federal Financial Institutions Ex21 amination Council, in consultation with the Department 

22 of the Treasury, shall develop uniform guidance and exam23 ination procedures for depository institutions that provide 

24 financial services to State-sanctioned marijuana busi25 nesses and service providers. 


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1 (b) LEGACY DEPOSITS.—The guidance and examina2 tion procedures described in subsection (a) shall permit 

3 a depository institution to accept a deposit of currency 

4 from a State-sanctioned marijuana business if— 

5 (1) the business received the currency during 

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

7 business commenced its relationship with the deposi8 tory institution; 

9 (2) the business provided the depository institu10 tion with records sufficient to demonstrate the 

11 source of the currency being deposited by the busi12 ness; 

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

14 light of the expected revenue of the business, as de15 termined by the depository institution consistent 

16 with the risk-based procedures for ensuring compli17 ance with the section 5318(h) of title 31, United 

18 States Code, and any applicable regulations imple19 menting that section; and 

20 (4) the depository institution complies with any 

21 other applicable reporting requirements pursuant to 

22 subchapter II of chapter 53 of title 31, United 

23 States Code, and any applicable regulations imple24 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 90-day pe26 riod beginning on the date of enactment of this Act, each 


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•S 1323 IS

1 Federal banking regulator shall update guidance, as in ef2 fect on the date of enactment of this Act, regarding pro3 viding financial services to hemp-related legitimate busi4 nesses and hemp-related service providers to address— 

5 (1) compliance with obligations of financial in6 stitutions, as of the date of enactment of this Act, 

7 under Federal laws (including regulations) deter8 mined relevant by the Federal banking regulator and 

9 the Department of the Treasury, including sub10 chapter II of chapter 53 of title 31, United States 

11 Code, and its implementing regulation in conformity 

12 with this Act and the regulations relating to domes13 tic hemp production under part 990 of title 7, Code 

14 of Federal Regulations; and 

15 (2) best practices for financial institutions to 

16 follow when providing financial services, including 

17 processing payments, to hemp-related legitimate 

18 businesses and hemp-related service providers. 

19 SEC. 9. TREATMENT OF INCOME DERIVED FROM A STATE20 SANCTIONED MARIJUANA BUSINESS FOR 

21 QUALIFICATION FOR A FEDERALLY BACKED 

22 SINGLE-FAMILY MORTGAGE LOAN. 

23 (a) DEFINITION.—In this section, the term ‘‘federally 

24 backed mortgage loan’’ means any loan secured by a first 

25 or subordinate lien on residential real property, including 


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•S 1323 IS

1 individual units of condominiums and cooperatives, de2 signed principally for the occupancy of 1 to 4 families that 

3 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; or 

16 (6) purchased or securitized by the Federal 

17 Home Loan Mortgage Corporation or the Federal 

18 National Mortgage Association. 

19 (b) TREATMENT OF INCOME.— 

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

21 State-sanctioned marijuana business that operates 

22 within a State, an Indian Tribe, or a political sub23 division of a State that allows the cultivation, pro24 duction, manufacture, sale, transportation, display, 

25 dispensing, distribution, or purchase of marijuana 


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•S 1323 IS

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

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

3 service provider (wherever located), shall be consid4 ered in the same manner as any other legal income 

5 for purposes of determining eligibility for a federally 

6 backed mortgage loan for a 1- to 4-unit property 

7 that is the principal residence of the mortgagor. 

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

9 federally backed mortgage loan described in para10 graph (1), or any Federal agency, the Federal Na11 tional Mortgage Association, or the Federal Home 

12 Loan Mortgage Corporation, may not be held liable 

13 pursuant to any Federal law or regulation solely 

14 for— 

15 (A) providing, insuring, guaranteeing, pur16 chasing, or securitizing a mortgage to an other17 wise qualified borrower on the basis of the in18 come described in paragraph (1); or 

19 (B) accepting the income described in 

20 paragraph (1) as payment on the federally 

21 backed mortgage loan. 

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

23 after the date of enactment of this Act— 

24 (1) the Federal Housing Administration shall 

25 implement subsection (b)— 


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•S 1323 IS

1 (A) by notice or mortgagee letter for loans 

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

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

4 seq., 1707 et seq., 1715z–20); and 

5 (B) by lender letter for loans guaranteed 

6 under section 184 or 184A of the Housing and 

7 Community Development Act of 1992 (12 

8 U.S.C. 1715z–13a, 1715z–13b); 

9 (2) the Department of Veterans Affairs shall 

10 implement subsection (b) by circular or handbook 

11 for loans guaranteed, insured, or made by the De12 partment; 

13 (3) the Department of Agriculture shall imple14 ment subsection (b) by bulletin for loans guaranteed 

15 or made by the Department; 

16 (4) the Federal Home Loan Mortgage Corpora17 tion shall implement subsection (b) by updating its 

18 Single-Family Seller/Servicer Guide for loans pur19 chased or securitized by the Corporation; and 

20 (5) the Federal National Mortgage Association 

21 shall implement subsection (b) by updating its Sin22 gle Family Selling Guide for loans purchased or 

23 securitized by the Association. 


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•S 1323 IS

1 SEC. 10. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI2 NATION REQUESTS AND ORDERS. 

3 (a) CONDITIONS FOR TERMINATION.— 

4 (1) IN GENERAL.—An appropriate Federal 

5 banking agency may not formally or informally re6 quest or order a depository institution to terminate 

7 a specific customer account or group of customer ac8 counts (including, but not limited to, any account of 

9 any customer that is a State-sanctioned marijuana 

10 business or service provider) or to otherwise restrict 

11 or discourage a depository institution from entering 

12 into or maintaining a banking relationship with a 

13 specific customer or group of customers (including, 

14 but not limited to, with any customer that is a 

15 State-sanctioned marijuana business or service pro16 vider), unless— 

17 (A) the agency has made a written deter18 mination that the depository institution is— 

19 (i) engaging in an unsafe or unsound 

20 practice; or 

21 (ii) violating a rule, law, regulation, or 

22 order with respect to the relationship of 

23 the depository institution with the cus24 tomer (or, in the case of a group of cus25 tomers, specific customers within the 

26 group); and 


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•S 1323 IS

1 (B) such reason is not based primarily on 

2 reputational risk. 

3 (2) TREATMENT OF NATIONAL SECURITY

4 THREATS.—If an appropriate Federal banking agen5 cy believes a specific customer or group of customers 

6 is, or is acting as a conduit for, an entity that— 

7 (A) poses a threat to national security; 

8 (B) is involved in terrorist financing; 

9 (C) is an agency of the Government of 

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

11 from time to time on the State Sponsors of 

12 Terrorism list; 

13 (D) is located in, or is subject to the juris14 diction of, any country specified in subpara15 graph (C); or 

16 (E) does business with any entity described 

17 in subparagraph (C) or (D), unless the appro18 priate Federal banking agency determines that 

19 the customer or group of customers has used 

20 due diligence to avoid doing business with any 

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

22 such belief shall satisfy the requirement under para23 graph (1). 

24 (b) NOTICE REQUIREMENT.— 


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•S 1323 IS

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

2 banking agency formally or informally requests or 

3 orders a depository institution to terminate a spe4 cific customer account or a group of customer ac5 counts, the agency shall— 

6 (A) provide such request or order to the 

7 institution in writing; and 

8 (B) accompany such request or order with 

9 a written justification for why such termination 

10 is needed, including any specific laws or regula11 tions the agency believes are being violated by 

12 the customer or group of customers, if any. 

13 (2) JUSTIFICATION REQUIREMENT.—A jus14 tification described under paragraph (1)(B) may not 

15 be based solely on the reputational risk to the depos16 itory institution. 

17 (c) CUSTOMER NOTICE.— 

18 (1) NOTICE REQUIRED.—Except as provided 

19 under paragraph (2) or as otherwise prohibited from 

20 being disclosed by law, if an appropriate Federal 

21 banking agency orders a depository institution to 

22 terminate a specific customer account or a group of 

23 customer accounts, the depository institution shall 

24 inform the specific customer or group of customers 


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•S 1323 IS

1 of the justification for the customer’s account termi2 nation described under subsection (b). 

3 (2) NOTICE PROHIBITED.— 

4 (A) NOTICE PROHIBITED IN CASES OF NA5 TIONAL SECURITY.—If an appropriate Federal 

6 banking agency requests or orders a depository 

7 institution to terminate a specific customer ac8 count or a group of customer accounts based on 

9 a belief that the customer or customers pose a 

10 threat to national security, or are otherwise de11 scribed under subsection (a)(2), neither the de12 pository institution nor the appropriate Federal 

13 banking agency may inform the customer or 

14 customers of the justification for the customer’s 

15 account termination. 

16 (B) NOTICE PROHIBITED IN OTHER

17 CASES.—If an appropriate Federal banking 

18 agency determines that the notice required 

19 under paragraph (1) may interfere with an au20 thorized criminal investigation, neither the de21 pository institution nor the appropriate Federal 

22 banking agency may inform the specific cus23 tomer or group of customers of the justification 

24 for the customer’s account termination. 


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•S 1323 IS

1 (d) REPORTING REQUIREMENT.—Each appropriate 

2 Federal banking agency shall submit to the Committee on 

3 Banking, Housing, and Urban Affairs of the Senate and 

4 the Committee on Financial Services of the House of Rep5 resentatives an annual report stating— 

6 (1) the aggregate number of specific customer 

7 accounts that the agency requested that a depository 

8 institution terminate, or ordered a depository insti9 tution to terminate, during the previous year; and 

10 (2) the legal authority on which the agency re11 lied in making each request and order under para12 graph (1) and the frequency on which the agency re13 lied on each such authority. 

14 (e) DEFINITIONS.—In this section: 

15 (1) APPROPRIATE FEDERAL BANKING AGEN16 CY.—The term ‘‘appropriate Federal banking agen17 cy’’ means— 

18 (A) the appropriate Federal banking agen19 cy, as defined under section 3 of the Federal 

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

21 (B) the National Credit Union Administra22 tion, in the case of an insured credit union. 

23 (2) DEPOSITORY INSTITUTION.—The term ‘‘de24 pository institution’’ means— 


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•S 1323 IS

1 (A) a depository institution, as defined 

2 under section 3 of the Federal Deposit Insur3 ance Act (12 U.S.C. 1813); and 

4 (B) an insured credit union. 

5 SEC. 11. ANNUAL DIVERSITY AND INCLUSION REPORT. 

6 The Federal banking regulators shall submit to Con7 gress an annual report containing— 

8 (1) information and data on the availability of 

9 access to financial services for minority-owned, vet10 eran-owned, women-owned, and small State-sanc11 tioned marijuana businesses; and 

12 (2) any regulatory or legislative recommenda13 tions for expanding access to financial services for 

14 minority-owned, veteran-owned, women-owned, and 

15 small State-sanctioned marijuana businesses and 

16 hemp-related legitimate businesses. 

17 SEC. 12. GAO STUDY ON DIVERSITY AND INCLUSION. 

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

19 States shall conduct a study on the barriers to market20 place entry, including in the licensing process, and the ac21 cess to financial services for potential and existing minor22 ity-owned, veteran-owned, women-owned, and small State23 sanctioned marijuana businesses and hemp-related legiti24 mate businesses. 


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•S 1323 IS

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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•S 1323 IS

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 1323 IS

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. RULES OF CONSTRUCTION. 

10 (a) NO REQUIREMENT TO PROVIDE FINANCIAL

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

12 institution, an entity performing a financial service for or 

13 in association with a depository institution, a community 

14 development financial institution, or an insurer to provide 

15 financial services to a State-sanctioned marijuana busi16 ness, service provider, or any other business. 

17 (b) GENERAL EXAMINATION, SUPERVISORY, AND

18 ENFORCEMENT AUTHORITY.—Nothing in this Act may be 

19 construed in any way to limit or otherwise restrict the gen20 eral examination, supervisory, and enforcement authority 

21 of the Federal banking regulators (including the Depart22 ment of the Treasury), provided that any supervisory or 

23 enforcement action is not being taken solely because the 

24 provision of financial services to a State-sanctioned mari25 juana business or service provider. 


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

2 shall interfere with the regulation of the business of insur3 ance in accordance with the Act entitled ‘‘An Act to ex4 press the intent of the Congress with reference to the reg5 ulation of the business of insurance’’, approved March 9, 

6 1945 (commonly known as the ‘‘McCarran-Ferguson 

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

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

9 5301 et seq.). 

10 (d) LAW ENFORCEMENT AUTHORITY.—Nothing in 

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

12 enforcement agencies to investigate and prosecute money13 laundering crimes involving proceeds of illegal activity 

14 other than marijuana-related activities conducted in com15 pliance with the law of the State, Indian Tribe, or political 

16 subdivision of a State by a State-sanctioned marijuana 

17 business or service provider. 

Æ 


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