SAFE Act of 2017

To create protections for depository institutions that provide financial services to cannabis-related legitimate businesses, and for other purposes. 1. Short title This Act may be cited as the Secure And Fair Enforcement Banking Act of 2017 SAFE Act of 2017 2. Safe harbor for depository institutions A Federal banking regulator may not— (1) terminate or limit the deposit insurance or share insurance of a depository institution under the Federal Deposit Insurance Act ( 12 U.S.C. 1811 12 U.S.C. 1751 (2) prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis-related legitimate business or to a State or political subdivision of a State that exercises jurisdiction over cannabis-related legitimate businesses; (3) recommend, incentivize, or encourage a depository institution not to offer financial services to an account holder, or to downgrade or cancel the financial services offered to an account holder solely because— (A) the account holder is a manufacturer or producer, or is the owner, operator, or employee of a cannabis-related legitimate business; (B) the account holder later becomes an owner or operator of a cannabis-related legitimate business; or (C) the depository institution was not aware that the account holder is the owner or operator of a cannabis-related legitimate business; and (4) take any adverse or corrective supervisory action on a loan made to an owner or operator of— (A) a cannabis-related legitimate business, solely because the owner or operator owns or operates a cannabis-related legitimate business; or (B) real estate or equipment that is leased to a cannabis-related legitimate business, solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related legitimate business. 3. Protections under Federal law (a) In general In a State or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of cannabis pursuant to a law or regulation of such State or political subdivision a depository institution that provides financial services to a cannabis-related legitimate business, and the officers, directors, and employees of that depository institution may not be held liable pursuant to any Federal law or regulation— (1) solely for providing such financial services pursuant to the law or regulation of such State or political subdivision; or (2) for further investing any income derived from such financial services. (b) Forfeiture A depository institution that has a legal interest in the collateral for a loan or another financial service provided to an owner or operator of a cannabis-related legitimate business, or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing such loan or other financial service. 4. Rule of construction Nothing in this Act shall require a depository institution to provide financial services to a cannabis-related legitimate business. 5. Requirements for filing suspicious activity reports Section 5318(g) of title 31, United States Code, is amended by adding at the end the following: (5) Requirements for cannabis-related businesses A financial institution or any director, officer, employee, or agent of a financial institution that reports a suspicious transaction pursuant to this subsection and the reason for the report relates to a cannabis-related legitimate business (as defined in section 6 of the Secure and Fair Enforcement Banking Act of 2017), the report shall comply with appropriate guidance issued by the Financial Crimes Enforcement Network. The Secretary shall ensure that the guidance is consistent with the purpose and intent of the Secure and Fair Enforcement Banking Act of 2017 and does not inhibit the provision of financial services to a cannabis-related legitimate business in a State or political subdivision of a State that has allowed the cultivation, production, manufacture, transportation, display, dispensing, distribution, sale, or purchase of cannabis pursuant to law or regulation of such State or political subdivision. . 6. Definitions In this Act: (1) Depository institution The term depository institution (A) a depository institution as defined in section 3(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(c) (B) a Federal credit union as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 (C) a State credit union as defined in section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 (2) Federal banking regulator The term Federal banking regulator (3) Financial service The term financial service 12 U.S.C. 5481 (4) Manufacturer The term manufacturer (5) Cannabis-related legitimate business The term cannabis-related legitimate business (A) engages in an activity described in subparagraph (B) pursuant to a law or regulation of a State, political subdivision of a State, or a Tribal-State compact; or (B) participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products. (6) Cannabis The term cannabis marihuana 21 U.S.C. 802 (7) Cannabis product The term cannabis product (8) Producer The term producer (9) State The term State

Summary: Secure and Fair Enforcement Banking Act of 2017 or the SAFE Act of 2017 This bill prohibits a federal banking regulator from: (1) terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate marijuana-related business; (2) prohibiting or otherwise discouraging a depository institution from offering financial services to such a business; (3) recommending, incentivizing, or encouraging a depository institution not to offer financial services to an account holder solely because the account holder is affiliated with such a business; or (4) taking any adverse or corrective supervisory action on a loan made to a person solely because the person either owns such a business or owns real estate or equipment leased to such a business. As specified by the bill, a depository institution shall not, under federal law, be liable or subject to forfeiture for providing financial services to a legitimate marijuana-related business.