SAFE Banking Act

To create protections for depository institutions that provide financial services to cannabis-related businesses, and for other purposes. 1. Short title This Act may be cited as the Secure and Fair Enforcement Banking Act SAFE Banking Act 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 Indian tribe that exercises jurisdiction over cannabis-related legitimate businesses; (3) recommend, incentivize, or encourage a depository institution not to offer financial services to the owner, operator, or an individual that is an account holder of a cannabis-related legitimate business, or downgrade or cancel financial services offered to an account holder of a cannabis-related legitimate business solely because— (A) the account holder later becomes a cannabis-related legitimate business; or (B) 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 to an owner or operator of— (A) a cannabis-related legitimate business solely because the business owner or operator is a cannabis-related business without express statutory authority, as in effect on the day before the date of enactment of this Act; or (B) real estate or equipment that is leased or sold to a cannabis-related legitimate business solely because the owner or operator of the real estate or equipment leased or sold the equipment or real estate to a cannabis-related legitimate business. 3. Protections under Federal law (a) In general In a State, political subdivision of a State, or Indian country that allows the cultivation, production, manufacturing, transportation, display, dispensing, distribution, sale, or purchase of cannabis pursuant to a law (including regulations) of the State, political subdivision of the State, or the Indian tribe that has jurisdiction over the Indian country, as applicable, a depository institution and the officers, director, and employees of the depository institution that provides financial services to a cannabis-related legitimate business may not be held liable pursuant to any Federal law (including regulations)— (1) solely for providing the financial services pursuant to the law (including regulations) of the State, political subdivision of the State, or Indian tribe; or (2) for further investing any income derived from the financial services. (b) Forfeiture A depository institution that has a legal interest in the collateral for a loan made 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 the loan or other financial services solely because the collateral is owned by a cannabis-related business. 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) Definitions In this paragraph— (i) the term cannabis marihuana 21 U.S.C. 802 (ii) the term cannabis-related legitimate business (iii) the term financial service 12 U.S.C. 5481 (iv) the term Indian country (v) the term Indian tribe 25 U.S.C. 479a (B) Reporting of suspicious transactions A financial institution or any director, officer, employee, or agent of a financial institution that reports a suspicious activity related to a transaction by a cannabis-related legitimate business 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 SAFE Banking Act . 6. Definitions In this Act: (1) Cannabis The term cannabis marihuana 21 U.S.C. 802 (2) Cannabis product The term cannabis product (3) Cannabis-related legitimate business The term cannabis-related legitimate business (A) engages in any activity described in subparagraph (B) pursuant to a law established by a State or a political subdivision of a State; and (B) (i) 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; or (ii) provides— (I) any financial service, including retirement plans or exchange traded funds, relating to cannabis; or (II) any business services, including the sale or lease of real or any other property, legal or other licensed services, or any other ancillary service, relating to cannabis. (4) Company The term company (5) 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 (6) Federal banking regulator The term Federal banking regulator (7) Financial service The term financial service 12 U.S.C. 5481 (8) Indian country The term Indian country (9) Indian tribe The term Indian tribe 25 U.S.C. 479a (10) Manufacturer The term manufacturer (11) Producer The term producer (12) State The term State

Summary: Secure and Fair Enforcement Banking Act or the SAFE Banking Act 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 or sold 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 a loan or other financial services to a legitimate marijuana-related business.