II 

117TH CONGRESS 

1ST SESSION S. 910 

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 SENATE OF THE UNITED STATES 

MARCH 23, 2021 

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

MARKEY, Mr. PADILLA, Mr. LEAHY, Mr. DURBIN, Mr. WYDEN, Ms. 

HIRONO, Ms. SMITH, Mr. KING, Ms. CORTEZ MASTO, Mr. BENNET, Mr. 

TESTER, Ms. ROSEN, Mr. CRAMER, Mr. SULLIVAN, Mrs. GILLIBRAND, 

Ms. WARREN, Mr. MURPHY, Mr. PETERS, Mr. SANDERS, Mr. SCHATZ, 

Mrs. MURRAY, Ms. KLOBUCHAR, Mr. PAUL, Mr. CASSIDY, Ms. LUMMIS, 

and Ms. MURKOWSKI) 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 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, 


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

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

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

4 the ‘‘SAFE Banking Act of 2021’’. 

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

6 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. 

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

8 public safety by ensuring access to financial services to 

9 cannabis-related legitimate businesses and service pro10 viders and reducing the amount of cash at such busi11 nesses. 

12 SEC. 2. SAFE HARBOR FOR DEPOSITORY INSTITUTIONS. 

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

14 not— 

15 (1) terminate or limit the deposit insurance or 

16 share insurance of a depository institution under the 

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


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1 seq.), the Federal Credit Union Act (12 U.S.C. 1751 

2 et seq.), or take any other adverse action against a 

3 depository institution under section 8 of the Federal 

4 Deposit Insurance Act (12 U.S.C. 1818) solely be5 cause the depository institution provides or has pro6 vided financial services to a cannabis-related legiti7 mate business or service provider; 

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

9 depository institution from providing financial serv10 ices to a cannabis-related legitimate business or 

11 service provider or to a State, political subdivision of 

12 a State, or Indian Tribe that exercises jurisdiction 

13 over cannabis-related legitimate businesses; 

14 (3) recommend, incentivize, or encourage a de15 pository institution not to offer financial services to 

16 an account holder, or to downgrade or cancel the fi17 nancial services offered to an account holder solely 

18 because— 

19 (A) the account holder is a cannabis-re20 lated legitimate business or service provider, or 

21 is an employee, owner, or operator of a can22 nabis-related legitimate business or service pro23 vider; 


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1 (B) the account holder later becomes an 

2 employee, owner, or operator of a cannabis-re3 lated legitimate business or service provider; or 

4 (C) the depository institution was not 

5 aware that the account holder is an employee, 

6 owner, or operator of a cannabis-related legiti7 mate business or service provider; 

8 (4) take any adverse or corrective supervisory 

9 action on a loan made to— 

10 (A) a cannabis-related legitimate business 

11 or service provider, solely because the business 

12 is a cannabis-related legitimate business or 

13 service provider; 

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

15 cannabis-related legitimate business or service 

16 provider, solely because the employee, owner, or 

17 operator is employed by, owns, or operates a 

18 cannabis-related legitimate business or service 

19 provider, as applicable; or 

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

21 equipment that is leased to a cannabis-related 

22 legitimate business or service provider, solely 

23 because the owner or operator of the real estate 

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1 tate to a cannabis-related legitimate business or 

2 service provider, as applicable; or 

3 (5) prohibit or penalize a depository institution 

4 (or entity performing a financial service for or in as5 sociation with a depository institution) for, or other6 wise discourage a depository institution (or entity 

7 performing a financial service for or in association 

8 with a depository institution) from, engaging in a fi9 nancial service for a cannabis-related legitimate 

10 business or service provider. 

11 (b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI12 TUTIONS.—Subsection (a) shall apply to an institution ap13 plying for a depository institution charter to the same ex14 tent as such subsection applies to a depository institution. 

15 SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES. 

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 a transaction involving activi19 ties of a cannabis-related legitimate business or service 

20 provider shall not be considered proceeds from an unlawful 

21 activity solely because— 

22 (1) the transaction involves proceeds from a 

23 cannabis-related legitimate business or service pro24 vider; or 

25 (2) the transaction involves proceeds from— 


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1 (A) cannabis-related activities described in 

2 section 14(4)(B) conducted by a cannabis-re3 lated legitimate business; or 

4 (B) activities described in section 

5 14(13)(A) conducted by a service provider. 

6 SEC. 4. PROTECTIONS UNDER FEDERAL LAW. 

7 (a) IN GENERAL.—With respect to providing a finan8 cial service to a cannabis-related legitimate business 

9 (where such cannabis-related legitimate business operates 

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

11 country that allows the cultivation, production, manufac12 ture, sale, transportation, display, dispensing, distribution, 

13 or purchase of cannabis pursuant to a law or regulation 

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

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

16 a service provider (wherever located), a depository institu17 tion, entity performing a financial service for or in associa18 tion with a depository institution, or insurer that provides 

19 a financial service to a cannabis-related legitimate busi20 ness or service provider, and the officers, directors, and 

21 employees of that depository institution, entity, or insurer 

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

23 regulation— 

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

25 or 


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1 (2) for further investing any income derived 

2 from such a financial service. 

3 (b) PROTECTIONS FOR FEDERAL RESERVE BANKS

4 AND FEDERAL HOME LOAN BANKS.—With respect to 

5 providing a service to a depository institution that pro6 vides a financial service to a cannabis-related legitimate 

7 business (where such cannabis-related legitimate business 

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

9 or Indian country that allows the cultivation, production, 

10 manufacture, sale, transportation, display, dispensing, dis11 tribution, or purchase of cannabis pursuant to a law or 

12 regulation of such State, political subdivision, or Indian 

13 Tribe that has jurisdiction over the Indian country, as ap14 plicable) or service provider (wherever located), a Federal 

15 reserve bank or Federal Home Loan Bank, and the offi16 cers, directors, and employees of the Federal reserve bank 

17 or Federal Home Loan Bank, may not be held liable pur18 suant to any Federal law or regulation— 

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

20 (2) for further investing any income derived 

21 from such a service. 

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

23 engaging in the business of insurance within a State, polit24 ical subdivision of a State, or Indian country that allows 

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1 tation, display, dispensing, distribution, or purchase of 

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

3 political subdivision, or Indian Tribe that has jurisdiction 

4 over the Indian country, as applicable, an insurer that en5 gages in the business of insurance with a cannabis-related 

6 legitimate business or service provider or who otherwise 

7 engages with a person in a transaction permissible under 

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

9 and employees of that insurer may not be held liable pur10 suant to any Federal law or regulation— 

11 (1) solely for engaging in the business of insur12 ance; or 

13 (2) for further investing any income derived 

14 from the business of insurance. 

15 (d) FORFEITURE.— 

16 (1) DEPOSITORY INSTITUTIONS.—A depository 

17 institution that has a legal interest in the collateral 

18 for a loan or another financial service provided to an 

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

20 legitimate business or service provider, or to an 

21 owner or operator of real estate or equipment that 

22 is leased or sold to a cannabis-related legitimate 

23 business or service provider, shall not be subject to 

24 criminal, civil, or administrative forfeiture of that 


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1 legal interest pursuant to any Federal law for pro2 viding 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 cannabis-related legitimate 

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 cannabis-related legitimate 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 SEC. 5. RULES OF CONSTRUCTION. 

17 (a) NO REQUIREMENT TO PROVIDE FINANCIAL

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

19 institution, entity performing a financial service for or in 

20 association with a depository institution, or insurer to pro21 vide financial services to a cannabis-related legitimate 

22 business, service provider, or any other business. 

23 (b) GENERAL EXAMINATION, SUPERVISORY, AND

24 ENFORCEMENT AUTHORITY.—Nothing in this Act may be 

25 construed in any way as limiting or otherwise restricting 


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1 the general examination, supervisory, and enforcement au2 thority of the Federal banking regulators, provided that 

3 the basis for any supervisory or enforcement action is not 

4 the provision of financial services to a cannabis-related le5 gitimate business or service provider. 

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

7 shall interfere with the regulation of the business of insur8 ance in accordance with the Act of March 9, 1945 (59 

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

10 known as the ‘‘McCarran-Ferguson Act’’) and the Dodd11 Frank Wall Street Reform and Consumer Protection Act 

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

13 SEC. 6. REQUIREMENTS FOR FILING SUSPICIOUS ACTIVITY 

14 REPORTS. 

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

16 amended by adding at the end the following: 

17 ‘‘(5) REQUIREMENTS FOR CANNABIS-RELATED

18 LEGITIMATE 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 cannabis-related legitimate business 

25 or service provider, the report shall comply with 


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1 appropriate guidance issued by the Financial 

2 Crimes Enforcement Network. Not later than 

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

4 date of enactment of this paragraph, the Sec5 retary shall update the February 14, 2014, 

6 guidance titled ‘BSA Expectations Regarding 

7 Marijuana-Related Businesses’ (FIN-2014- 

8 G001) to ensure that the guidance is consistent 

9 with the purpose and intent of the SAFE 

10 Banking Act of 2021 and does not significantly 

11 inhibit the provision of financial services to a 

12 cannabis-related legitimate business or service 

13 provider in a State, political subdivision of a 

14 State, or Indian country that has allowed the 

15 cultivation, production, manufacture, transpor16 tation, display, dispensing, distribution, sale, or 

17 purchase of cannabis pursuant to law or regula18 tion of such State, political subdivision, or In19 dian Tribe that has jurisdiction over the Indian 

20 country. 

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

22 paragraph: 

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

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1 huana’ in section 102 of the Controlled 

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

3 ‘‘(ii) CANNABIS-RELATED LEGITIMATE

4 BUSINESS.—The term ‘cannabis-related le5 gitimate business’ has the meaning given 

6 that term in section 14 of the SAFE 

7 Banking Act of 2021. 

8 ‘‘(iii) INDIAN COUNTRY.—The term 

9 ‘Indian country’ has the meaning given 

10 that term in section 1151 of title 18. 

11 ‘‘(iv) INDIAN TRIBE.—The term ‘In12 dian Tribe’ has the meaning given that 

13 term in section 102 of the Federally Rec14 ognized Indian Tribe List Act of 1994 (25 

15 U.S.C. 479a). 

16 ‘‘(v) FINANCIAL SERVICE.—The term 

17 ‘financial service’ has the meaning given 

18 that term in section 14 of the SAFE 

19 Banking Act of 2021. 

20 ‘‘(vi) SERVICE PROVIDER.—The term 

21 ‘service provider’ has the meaning given 

22 that term in section 14 of the SAFE 

23 Banking Act of 2021. 

24 ‘‘(vii) STATE.—The term ‘State’ 

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1 trict of Columbia, the Commonwealth of 

2 Puerto Rico, and any territory or posses3 sion of the United States.’’. 

4 SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 

5 Not later than 180 days after the date of enactment 

6 of this Act, the Financial Institutions Examination Coun7 cil shall develop uniform guidance and examination proce8 dures for depository institutions that provide financial 

9 services to cannabis-related legitimate businesses and 

10 service providers. 

11 SEC. 8. ANNUAL DIVERSITY AND INCLUSION REPORT. 

12 The Federal banking regulators shall issue an annual 

13 report to Congress containing— 

14 (1) information and data on the availability of 

15 access to financial services for minority-owned and 

16 women-owned cannabis-related legitimate businesses; 

17 and 

18 (2) any regulatory or legislative recommenda19 tions for expanding access to financial services for 

20 minority-owned and women-owned cannabis-related 

21 legitimate businesses. 

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

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

24 States shall carry out a study on the barriers to market25 place entry, including in the licensing process, and the acVerDate Sep 11 2014 23:20 Apr 12, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S910.IS S910

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1 cess to financial services for potential and existing minor2 ity-owned and women-owned cannabis-related legitimate 

3 businesses. 

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

5 report to the Congress— 

6 (1) containing all findings and determinations 

7 made in carrying out the study required under sub8 section (a); and 

9 (2) containing any regulatory or legislative rec10 ommendations for removing barriers to marketplace 

11 entry, including in the licensing process, and ex12 panding access to financial services for potential and 

13 existing minority-owned and women-owned cannabis14 related legitimate businesses. 

15 SEC. 10. GAO STUDY ON EFFECTIVENESS OF CERTAIN RE16 PORTS ON FINDING CERTAIN PERSONS. 

17 Not later than 2 years after the date of the enact18 ment of this Act, the Comptroller General of the United 

19 States shall carry out a study on the effectiveness of re20 ports on suspicious transactions filed pursuant to section 

21 5318(g) of title 31, United States Code, at finding individ22 uals or organizations suspected or known to be engaged 

23 with transnational criminal organizations and whether any 

24 such engagement exists in a State, political subdivision, 

25 or Indian Tribe that has jurisdiction over Indian country 


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

2 transportation, display, dispensing, distribution, or pur3 chase of cannabis. The study shall examine reports on sus4 picious transactions as follows: 

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

6 the enactment of this Act, reports relating to mari7 juana-related businesses. 

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

9 enactment of this Act, reports relating to cannabis10 related legitimate businesses. 

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

12 HEMP-RELATED LEGITIMATE BUSINESSES 

13 AND HEMP-RELATED SERVICE PROVIDERS. 

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

15 than sections 6 and 10) shall apply with respect to hemp16 related legitimate businesses and hemp-related service pro17 viders in the same manner as such provisions apply with 

18 respect to cannabis-related legitimate businesses and serv19 ice providers. 

20 (b) DEFINITIONS.—In this section: 

21 (1) CBD.—The term ‘‘CBD’’ means cannabi22 diol. 

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

24 given that term under section 297A of the Agricul25 tural Marketing Act of 1946 (7 U.S.C. 1639o). 


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1 (3) HEMP-RELATED LEGITIMATE BUSINESS.— 

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

3 a manufacturer, producer, or any person or company 

4 that— 

5 (A) engages in any activity described in 

6 subparagraph (B) in conformity with the Agri7 cultural Improvement Act of 2018 (Public Law 

8 115–334) and the regulations issued to imple9 ment such Act by the Department of Agri10 culture, where applicable, and the law of a 

11 State or political subdivision thereof or Indian 

12 Tribe; and 

13 (B) participates in any business or orga14 nized activity that involves handling hemp, 

15 hemp-derived CBD products, and other hemp16 derived cannabinoid products, including culti17 vating, producing, drying, storing, extracting, 

18 remediating, purifying, testing, manufacturing, 

19 selling, transporting, transferring, displaying, 

20 dispensing, distributing, or purchasing hemp, 

21 hemp-derived CBD products, and other hemp22 derived cannabinoid products. 

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

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


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1 (A) means a business, organization, or 

2 other person that— 

3 (i) sells goods or services to a hemp4 related legitimate business; or 

5 (ii) provides any business services, in6 cluding the sale or lease of real or any 

7 other property, legal or other licensed serv8 ices, or any other ancillary service, relating 

9 to hemp, hemp-derived CBD products, or 

10 other hemp-derived cannabinoid products; 

11 and 

12 (B) does not include a business, organiza13 tion, or other person that participates in any 

14 business or organized activity that involves han15 dling hemp, hemp-derived CBD products, or 

16 other hemp-derived cannabinoid products, in17 cluding cultivating, producing, drying, storing, 

18 extracting, remediating, purifying, testing, man19 ufacturing, selling, transporting, transferring, 

20 displaying, dispensing, distributing, or pur21 chasing hemp, hemp-derived CBD products, 

22 and other hemp-derived cannabinoid products. 


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1 SEC. 12. BANKING SERVICES FOR HEMP-RELATED LEGITI2 MATE BUSINESSES AND HEMP-RELATED 

3 SERVICE PROVIDERS. 

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

5 (1) the Agriculture Improvement Act of 2018 

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

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

8 Controlled Substances Act; 

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

10 businesses (including producers, manufacturers, and 

11 retailers) and service providers continue to have dif12 ficulty gaining access to banking products and serv13 ices; 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) FEDERAL BANKING REGULATORS’ HEMP BANK18 ING GUIDANCE.—Not later than the end of the 90-day pe19 riod beginning on the date of enactment of this Act, the 

20 Federal banking regulators shall update their existing 

21 guidance, as applicable, regarding the provision of finan22 cial services to hemp-related legitimate businesses and 

23 hemp-related service providers to address— 

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1 eral banking regulators, including subchapter II of 

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

3 implementing regulation in conformity with this Act 

4 and the Department of Agriculture’s rules regulating 

5 domestic hemp production (7 C.F.R. 990); and 

6 (2) best practices for financial institutions to 

7 follow when providing financial services, including 

8 processing payments, to hemp-related legitimate 

9 businesses and hemp-related service providers. 

10 (c) DEFINITIONS.—In this section: 

11 (1) FINANCIAL INSTITUTION.—The term ‘‘fi12 nancial institution’’— 

13 (A) has the meaning given that term under 

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

15 and 

16 (B) includes a bank holding company, as 

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

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

19 (2) HEMP TERMS.—The terms ‘‘CBD’’, 

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

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

22 given those terms, respectively, under section 11. 


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1 SEC. 13. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI2 NATION REQUESTS AND ORDERS. 

3 (a) TERMINATION REQUESTS OR ORDERS MUST BE

4 VALID.— 

5 (1) IN GENERAL.—An appropriate Federal 

6 banking agency may not formally or informally re7 quest or order a depository institution to terminate 

8 a specific customer account or group of customer ac9 counts or to otherwise restrict or discourage a de10 pository institution from entering into or maintain11 ing a banking relationship with a specific customer 

12 or group of customers unless— 

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

14 request or order; and 

15 (B) such reason is not based solely on rep16 utation risk. 

17 (2) TREATMENT OF NATIONAL SECURITY

18 THREATS.—If an appropriate Federal banking agen19 cy believes a specific customer or group of customers 

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

21 (A) poses a threat to national security; 

22 (B) is involved in terrorist financing; 

23 (C) is an agency of the Government of 

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

25 from time to time on the State Sponsors of 

26 Terrorism list; 


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1 (D) is located in, or is subject to the juris2 diction of, any country specified in subpara3 graph (C); or 

4 (E) does business with any entity described 

5 in subparagraph (C) or (D), unless the appro6 priate Federal banking agency determines that 

7 the customer or group of customers has used 

8 due diligence to avoid doing business with any 

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

10 such belief shall satisfy the requirement under para11 graph (1). 

12 (b) NOTICE REQUIREMENT.— 

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

14 banking agency formally or informally requests or 

15 orders a depository institution to terminate a spe16 cific customer account or a group of customer ac17 counts, the agency shall— 

18 (A) provide such request or order to the 

19 institution in writing; and 

20 (B) accompany such request or order with 

21 a written justification for why such termination 

22 is needed, including any specific laws or regula23 tions the agency believes are being violated by 

24 the customer or group of customers, if any. 


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1 (2) JUSTIFICATION REQUIREMENT.—A jus2 tification described under paragraph (1)(B) may not 

3 be based solely on the reputation risk to the deposi4 tory institution. 

5 (c) CUSTOMER NOTICE.— 

6 (1) NOTICE REQUIRED.—Except as provided 

7 under paragraph (2) or as otherwise prohibited from 

8 being disclosed by law, if an appropriate Federal 

9 banking agency orders a depository institution to 

10 terminate a specific customer account or a group of 

11 customer accounts, the depository institution shall 

12 inform the specific customer or group of customers 

13 of the justification for the customer’s account termi14 nation described under subsection (b). 

15 (2) NOTICE PROHIBITED.— 

16 (A) NOTICE PROHIBITED IN CASES OF NA17 TIONAL SECURITY.—If an appropriate Federal 

18 banking agency requests or orders a depository 

19 institution to terminate a specific customer ac20 count or a group of customer accounts based on 

21 a belief that the customer or customers pose a 

22 threat to national security, or are otherwise de23 scribed under subsection (a)(2), neither the de24 pository institution nor the appropriate Federal 

25 banking agency may inform the customer or 


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1 customers of the justification for the customer’s 

2 account termination. 

3 (B) NOTICE PROHIBITED IN OTHER

4 CASES.—If an appropriate Federal banking 

5 agency determines that the notice required 

6 under paragraph (1) may interfere with an au7 thorized criminal investigation, neither the de8 pository institution nor the appropriate Federal 

9 banking agency may inform the specific cus10 tomer or group of customers of the justification 

11 for the customer’s account termination. 

12 (d) REPORTING REQUIREMENT.—Each appropriate 

13 Federal banking agency shall issue an annual report to 

14 the Congress stating— 

15 (1) the aggregate number of specific customer 

16 accounts that the agency requested or ordered a de17 pository institution to terminate during the previous 

18 year; and 

19 (2) the legal authority on which the agency re20 lied in making such requests and orders and the fre21 quency on which the agency relied on each such au22 thority. 

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


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1 (1) APPROPRIATE FEDERAL BANKING AGEN2 CY.—The term ‘‘appropriate Federal banking agen3 cy’’ means— 

4 (A) the appropriate Federal banking agen5 cy, as defined under section 3 of the Federal 

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

7 (B) the National Credit Union Administra8 tion, in the case of an insured credit union. 

9 (2) DEPOSITORY INSTITUTION.—The term ‘‘de10 pository institution’’ means— 

11 (A) a depository institution, as defined 

12 under section 3 of the Federal Deposit Insur13 ance Act (12 U.S.C. 1813); and 

14 (B) an insured credit union. 

15 SEC. 14. DEFINITIONS. 

16 In this Act: 

17 (1) BUSINESS OF INSURANCE.—The term 

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

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

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

21 5481). 

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

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

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


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

2 product’’ means any article which contains cannabis, 

3 including an article which is a concentrate, an edi4 ble, a tincture, a cannabis-infused product, or a top5 ical. 

6 (4) CANNABIS-RELATED LEGITIMATE BUSI7 NESS.—The term ‘‘cannabis-related legitimate busi8 ness’’ means a manufacturer, producer, or any per9 son or company that— 

10 (A) engages in any activity described in 

11 subparagraph (B) pursuant to a law established 

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

13 as determined by such State or political subdivi14 sion; and 

15 (B) participates in any business or orga16 nized activity that involves handling cannabis or 

17 cannabis products, including cultivating, pro18 ducing, manufacturing, selling, transporting, 

19 displaying, dispensing, distributing, or pur20 chasing cannabis or cannabis products. 

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

23 (A) a depository institution as defined in 

24 section 3(c) of the Federal Deposit Insurance 

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


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1 (B) a Federal credit union as defined in 

2 section 101 of the Federal Credit Union Act 

3 (12 U.S.C. 1752); or 

4 (C) a State credit union as defined in sec5 tion 101 of the Federal Credit Union Act (12 

6 U.S.C. 1752). 

7 (6) FEDERAL BANKING REGULATOR.—The 

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

9 Board of Governors of the Federal Reserve System, 

10 the Bureau of Consumer Financial Protection, the 

11 Federal Deposit Insurance Corporation, the Federal 

12 Housing Finance Agency, the Financial Crimes En13 forcement Network, the Office of Foreign Asset 

14 Control, the Office of the Comptroller of the Cur15 rency, the National Credit Union Administration, 

16 the Department of the Treasury, or any Federal 

17 agency or department that regulates banking or fi18 nancial services, as determined by the Secretary of 

19 the Treasury. 

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

21 service’’— 

22 (A) means— 

23 (i) a financial product or service, as 

24 defined in section 1002 of the Dodd-Frank 

25 Wall Street Reform and Consumer ProtecVerDate Sep 11 2014 23:20 Apr 12, 2021 Jkt 019200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S910.IS S910

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1 tion Act (12 U.S.C. 5481) regardless of 

2 whether the customer receiving the product 

3 or service is a consumer or commercial en4 tity; or 

5 (ii) a financial product or service, or 

6 any combination of products and services, 

7 permitted to be provided by— 

8 (I) a national bank or a financial 

9 subsidiary pursuant to the authority 

10 provided under— 

11 (aa) the provision designated 

12 ‘‘Seventh’’ of section 5136 of the 

13 Revised Statutes of the United 

14 States (12 U.S.C. 24); or 

15 (bb) section 5136A of the 

16 Revised Statutes of the United 

17 States (12 U.S.C. 24a); or 

18 (II) a Federal credit union, pur19 suant to the authority provided under 

20 the Federal Credit Union Act; and 

21 (B) includes— 

22 (i) the business of insurance; 

23 (ii) whether performed directly or in24 directly, the authorizing, processing, clear25 ing, settling, billing, transferring for deVerDate Sep 11 2014 23:20 Apr 12, 2021 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S910.IS S910

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1 posit, transmitting, delivering, instructing 

2 to be delivered, reconciling, collecting, or 

3 otherwise effectuating or facilitating of 

4 payments or funds, where such payments 

5 or funds are made or transferred by any 

6 means, including by the use of credit 

7 cards, debit cards, other payment cards, or 

8 other access devices, accounts, original or 

9 substitute checks, or electronic funds 

10 transfers; 

11 (iii) acting as a money transmitting 

12 business which directly or indirectly makes 

13 use of a depository institution in connec14 tion with effectuating or facilitating a pay15 ment for a cannabis-related legitimate 

16 business or service provider in compliance 

17 with section 5330 of title 31, United 

18 States Code, and any applicable State law; 

19 and 

20 (iv) acting as an armored car service 

21 for processing and depositing with a depos22 itory institution or a Federal reserve bank 

23 with respect to any monetary instruments 

24 (as defined under section 1956(c)(5) of 

25 title 18, 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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