116TH CONGRESS 
1ST SESSION H. R. 1595 
AN ACT 
To create protections for depository institutions that provide 
financial services to cannabis-related legitimate busi-
nesses and service providers for such businesses, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
business or service provider or to a State, polit-
ical subdivision of a State, or Indian Tribe that 
exercises jurisdiction over cannabis-related le-
gitimate businesses; 
(3) recommend, incentivize, or encourage a 
depository institution not to offer financial serv-
ices to an account holder, or to downgrade or 
cancel the financial services offered to an ac-
count holder solely because— 
(A) the account holder is a cannabis- 
related legitimate business or service pro-
vider, or is an employee, owner, or oper-
ator of a cannabis-related legitimate busi-
ness or service provider; 
(B) the account holder later becomes 
an employee, owner, or operator of a can-
nabis-related legitimate business or service 
provider; or 
(C) the depository institution was not 
aware that the account holder is an em-
ployee, owner, or operator of a cannabis-re-
lated legitimate business or service pro-
vider; 
(4) take any adverse or corrective super-
visory action on a loan made to—
(A) a cannabis-related legitimate busi-
ness or service provider, solely because the 
business is a cannabis-related legitimate 
business or service provider; 
(B) an employee, owner, or operator 
of a cannabis-related legitimate business or 
service provider, solely because the em-
ployee, owner, or operator is employed by, 
owns, or operates a cannabis-related legiti-
mate business or service provider, as appli-
cable; or 
(C) an owner or operator of real es-
tate or equipment that is leased to a can-
nabis-related legitimate business or service 
provider, solely because the owner or oper-
ator of the real estate or equipment leased 
the equipment or real estate to a cannabis- 
related legitimate business or service pro-
vider, as applicable; or 
(5) prohibit or penalize a depository insti-
tution (or entity performing a financial service 
for or in association with a depository institu-
tion) for, or otherwise discourage a depository 
institution (or entity performing a financial 
service for or in association with a depository
institution) from, engaging in a financial service 
for a cannabis-related legitimate business or 
service provider. 
(b) SAFE HARBOR APPLICABLE TO DE NOVO INSTI-
TUTIONS.—Subsection (a) shall apply to an institution ap-
plying for a depository institution charter to the same ex-
tent as such subsection applies to a depository institution. 
SEC. 3. PROTECTIONS FOR ANCILLARY BUSINESSES. 
For the purposes of sections 1956 and 1957 of title 
18, United States Code, and all other provisions of Fed-
eral law, the proceeds from a transaction involving activi-
ties of a cannabis-related legitimate business or service 
provider shall not be considered proceeds from an unlawful 
activity solely because— 
(1) the transaction involves proceeds from a 
cannabis-related legitimate business or service pro-
vider; or 
(2) the transaction involves proceeds from— 
(A) cannabis-related activities described in 
section 14(4)(B) conducted by a cannabis-re-
lated legitimate business; or 
(B) 
activities 
described 
in 
section 
14(13)(A) conducted by a service provider.
SEC. 4. PROTECTIONS UNDER FEDERAL LAW. 
(a) IN GENERAL.—With respect to providing a finan-
cial service to a cannabis-related legitimate business or 
service provider within a State, political subdivision of a 
State, or Indian country that allows the cultivation, pro-
duction, manufacture, sale, transportation, display, dis-
pensing, distribution, or purchase of cannabis pursuant to 
a law or regulation of such State, political subdivision, or 
Indian Tribe that has jurisdiction over the Indian country, 
as applicable, a depository institution, entity performing 
a financial service for or in association with a depository 
institution, or insurer that provides a financial service to 
a cannabis-related legitimate business or service provider, 
and the officers, directors, and employees of that deposi-
tory institution, entity, or insurer may not be held liable 
pursuant to any Federal law or regulation— 
(1) solely for providing such a financial service; 
or 
(2) for further investing any income derived 
from such a financial service. 
(b) PROTECTIONS FOR FEDERAL RESERVE BANKS 
AND FEDERAL HOME LOAN BANKS.—With respect to 
providing a service to a depository institution that pro-
vides a financial service to a cannabis-related legitimate 
business or service provider (where such financial service 
is provided within a State, political subdivision of a State,
or Indian country that allows the cultivation, production, 
manufacture, sale, transportation, display, dispensing, dis-
tribution, or purchase of cannabis pursuant to a law or 
regulation of such State, political subdivision, or Indian 
Tribe that has jurisdiction over the Indian country, as ap-
plicable), a Federal reserve bank or Federal Home Loan 
Bank, and the officers, directors, and employees of the 
Federal reserve bank or Federal Home Loan Bank, may 
not be held liable pursuant to any Federal law or regula-
tion— 
(1) solely for providing such a service; or 
(2) for further investing any income derived 
from such a service. 
(c) PROTECTIONS FOR INSURERS.—With respect to 
engaging in the business of insurance within a State, polit-
ical subdivision of a State, or Indian country that allows 
the cultivation, production, manufacture, sale, transpor-
tation, display, dispensing, distribution, or purchase of 
cannabis pursuant to a law or regulation of such State, 
political subdivision, or Indian Tribe that has jurisdiction 
over the Indian country, as applicable, an insurer that en-
gages in the business of insurance with a cannabis-related 
legitimate business or service provider or who otherwise 
engages with a person in a transaction permissible under 
State law related to cannabis, and the officers, directors,
ator of real estate or equipment that is leased or 
sold to a cannabis-related legitimate business or 
service provider, shall not be subject to criminal, 
civil, or administrative forfeiture of that legal inter-
est pursuant to any Federal law for providing such 
loan or other financial service. 
SEC. 5. RULES OF CONSTRUCTION. 
(a) NO REQUIREMENT TO PROVIDE FINANCIAL 
SERVICES.—Nothing in this Act shall require a depository 
institution, entity performing a financial service for or in 
association with a depository institution, or insurer to pro-
vide financial services to a cannabis-related legitimate 
business, service provider, or any other business. 
(b) GENERAL EXAMINATION, SUPERVISORY, AND 
ENFORCEMENT AUTHORITY.—Nothing in this Act may be 
construed in any way as limiting or otherwise restricting 
the general examination, supervisory, and enforcement au-
thority of the Federal banking regulators, provided that 
the basis for any supervisory or enforcement action is not 
the provision of financial services to a cannabis-related le-
gitimate business or service provider. 
SEC. 6. 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 
LEGITIMATE BUSINESSES.— 
‘‘(A) IN GENERAL.—With respect to a fi-
nancial institution or any director, officer, em-
ployee, or agent of a financial institution that 
reports a suspicious transaction pursuant to 
this subsection, if the reason for the report re-
lates to a cannabis-related legitimate business 
or service provider, 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 SAFE Banking 
Act of 2019 and does not significantly inhibit 
the provision of financial services to a cannabis- 
related legitimate business or service provider in 
a State, political subdivision of a State, or In-
dian country that has allowed the cultivation, 
production, manufacture, transportation, dis-
play, dispensing, distribution, sale, or purchase 
of cannabis pursuant to law or regulation of 
such State, political subdivision, or Indian 
Tribe that has jurisdiction over the Indian 
country.
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph: 
‘‘(i) CANNABIS.—The term ‘cannabis’ 
has the meaning given the term ‘mari-
huana’ in section 102 of the Controlled 
Substances Act (21 U.S.C. 802). 
‘‘(ii) CANNABIS-RELATED LEGITIMATE 
BUSINESS.—The term ‘cannabis-related le-
gitimate business’ has the meaning given 
that term in section 14 of the SAFE 
Banking Act of 2019. 
‘‘(iii) INDIAN
COUNTRY.—The term 
‘Indian country’ has the meaning given 
that term in section 1151 of title 18. 
‘‘(iv) INDIAN TRIBE.—The term ‘In-
dian Tribe’ has the meaning given that 
term in section 102 of the Federally Rec-
ognized Indian Tribe List Act of 1994 (25 
U.S.C. 479a). 
‘‘(v) FINANCIAL SERVICE.—The term 
‘financial service’ has the meaning given 
that term in section 14 of the SAFE 
Banking Act of 2019. 
‘‘(vi) SERVICE PROVIDER.—The term 
‘service provider’ has the meaning given
that term in section 14 of the SAFE 
Banking Act of 2019. 
‘‘(vii) 
STATE.—The 
term 
‘State’ 
means each of the several States, the Dis-
trict of Columbia, Puerto Rico, and any 
territory or possession of the United 
States.’’. 
SEC. 7. GUIDANCE AND EXAMINATION PROCEDURES. 
Not later than 180 days after the date of enactment 
of this Act, the Financial Institutions Examination Coun-
cil shall develop uniform guidance and examination proce-
dures for depository institutions that provide financial 
services to cannabis-related legitimate businesses and 
service providers. 
SEC. 8. ANNUAL DIVERSITY AND INCLUSION REPORT. 
The Federal banking regulators shall issue an annual 
report to Congress containing— 
(1) information and data on the availability of 
access to financial services for minority-owned and 
women-owned cannabis-related legitimate businesses; 
and 
(2) any regulatory or legislative recommenda-
tions for expanding access to financial services for 
minority-owned and women-owned cannabis-related 
legitimate businesses.
SEC. 9. GAO STUDY ON DIVERSITY AND INCLUSION. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on the barriers to market-
place entry, including in the licensing process, and the ac-
cess to financial services for potential and existing minor-
ity-owned and women-owned cannabis-related legitimate 
businesses. 
(b) REPORT.—The Comptroller General shall issue a 
report to the Congress— 
(1) containing all findings and determinations 
made in carrying out the study required under sub-
section (a); and 
(2) containing any regulatory or legislative rec-
ommendations for removing barriers to marketplace 
entry, including in the licensing process, and ex-
panding access to financial services for potential and 
existing minority-owned and women-owned cannabis- 
related legitimate businesses. 
SEC. 10. GAO STUDY ON EFFECTIVENESS OF CERTAIN RE-
PORTS ON FINDING CERTAIN PERSONS. 
Not later than 2 years after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall carry out a study on the effectiveness of re-
ports on suspicious transactions filed pursuant to section 
5318(g) of title 31, United States Code, at finding individ-
uals or organizations suspected or known to be engaged
with transnational criminal organizations and whether any 
such engagement exists in a State, political subdivision, 
or Indian Tribe that has jurisdiction over Indian country 
that allows the cultivation, production, manufacture, sale, 
transportation, display, dispensing, distribution, or pur-
chase of cannabis. The study shall examine reports on sus-
picious transactions as follows: 
(1) During the period of 2014 until the date of 
the enactment of this Act, reports relating to mari-
juana-related businesses. 
(2) During the 1-year period after date of the 
enactment of this Act, reports relating to cannabis- 
related legitimate businesses. 
SEC. 11. BANKING SERVICES FOR HEMP BUSINESSES. 
(a) FINDINGS.—The Congress finds that— 
(1) the Agriculture Improvement Act of 2018 
(Public Law 115–334) legalized hemp by removing 
it from the definition of ‘‘marihuana’’ under the 
Controlled Substances Act; 
(2) despite the legalization of hemp, some hemp 
businesses (including producers, manufacturers, and 
retailers) continue to have difficulty gaining access 
to banking products and services; and
SEC. 12. APPLICATION OF SAFE HARBORS TO HEMP AND 
CBD PRODUCTS. 
(a) IN GENERAL.—Except as provided under sub-
section (b), the provisions of this Act (other than sections 
6 and 10) shall apply to hemp (including hemp-derived 
cannabidiol and other hemp-derived cannabinoid products) 
in the same manner as such provisions apply to cannabis. 
(b) RULE OF APPLICATION.—In applying the provi-
sions of this Act described under subsection (a) to hemp, 
the definition of ‘‘cannabis-related legitimate business’’ 
shall be treated as excluding any requirement to engage 
in activity pursuant to the law of a State or political sub-
division thereof. 
(c) HEMP DEFINED.—In this section, the term 
‘‘hemp’’ has the meaning given that term under section 
297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 
1639o). 
SEC. 13. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI-
NATION REQUESTS AND ORDERS. 
(a) TERMINATION REQUESTS OR ORDERS MUST BE 
VALID.— 
(1) IN
GENERAL.—An appropriate Federal 
banking agency may not formally or informally re-
quest or order a depository institution to terminate 
a specific customer account or group of customer ac-
counts or to otherwise restrict or discourage a de-
pository institution from entering into or maintain-
ing a banking relationship with a specific customer 
or group of customers unless— 
(A) the agency has a valid reason for such 
request or order; and 
(B) such reason is not based solely on rep-
utation risk. 
(2) 
TREATMENT
OF
NATIONAL
SECURITY 
THREATS.—If an appropriate Federal banking agen-
cy believes a specific customer or group of customers 
is, or is acting as a conduit for, an entity which— 
(A) poses a threat to national security; 
(B) is involved in terrorist financing; 
(C) is an agency of the Government of 
Iran, North Korea, Syria, or any country listed 
from time to time on the State Sponsors of 
Terrorism list; 
(D) is located in, or is subject to the juris-
diction of, any country specified in subpara-
graph (C); or 
(E) does business with any entity described 
in subparagraph (C) or (D), unless the appro-
priate Federal banking agency determines that 
the customer or group of customers has used
due diligence to avoid doing business with any 
entity described in subparagraph (C) or (D), 
such belief shall satisfy the requirement under para-
graph (1). 
(b) NOTICE REQUIREMENT.— 
(1) IN GENERAL.—If an appropriate Federal 
banking agency formally or informally requests or 
orders a depository institution to terminate a spe-
cific customer account or a group of customer ac-
counts, the agency shall— 
(A) provide such request or order to the 
institution in writing; and 
(B) accompany such request or order with 
a written justification for why such termination 
is needed, including any specific laws or regula-
tions the agency believes are being violated by 
the customer or group of customers, if any. 
(2) JUSTIFICATION
REQUIREMENT.—A jus-
tification described under paragraph (1)(B) may not 
be based solely on the reputation risk to the deposi-
tory institution. 
(c) CUSTOMER NOTICE.— 
(1) NOTICE
REQUIRED.—Except as provided 
under paragraph (2) or as otherwise prohibited from 
being disclosed by law, if an appropriate Federal
banking agency orders a depository institution to 
terminate a specific customer account or a group of 
customer accounts, the depository institution shall 
inform the specific customer or group of customers 
of the justification for the customer’s account termi-
nation described under subsection (b). 
(2) NOTICE PROHIBITED.— 
(A) NOTICE PROHIBITED IN CASES OF NA-
TIONAL SECURITY.—If an appropriate Federal 
banking agency requests or orders a depository 
institution to terminate a specific customer ac-
count or a group of customer accounts based on 
a belief that the customer or customers pose a 
threat to national security, or are otherwise de-
scribed under subsection (a)(2), neither the de-
pository institution nor the appropriate Federal 
banking agency may inform the customer or 
customers of the justification for the customer’s 
account termination. 
(B) 
NOTICE
PROHIBITED
IN
OTHER 
CASES.—If an appropriate Federal banking 
agency determines that the notice required 
under paragraph (1) may interfere with an au-
thorized criminal investigation, neither the de-
pository institution nor the appropriate Federal
banking agency may inform the specific cus-
tomer or group of customers of the justification 
for the customer’s account termination. 
(d) REPORTING REQUIREMENT.—Each appropriate 
Federal banking agency shall issue an annual report to 
the Congress stating— 
(1) the aggregate number of specific customer 
accounts that the agency requested or ordered a de-
pository institution to terminate during the previous 
year; and 
(2) the legal authority on which the agency re-
lied in making such requests and orders and the fre-
quency on which the agency relied on each such au-
thority. 
(e) DEFINITIONS.—For purposes of this section: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ means— 
(A) the appropriate Federal banking agen-
cy, as defined under section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
(B) the National Credit Union Administra-
tion, in the case of an insured credit union. 
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means—
(A) a depository institution, as defined 
under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813); and 
(B) an insured credit union. 
SEC. 14. DEFINITIONS. 
In this Act: 
(1) BUSINESS
OF
INSURANCE.—The term 
‘‘business of insurance’’ has the meaning given such 
term in section 1002 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 
5481). 
(2) CANNABIS.—The term ‘‘cannabis’’ has the 
meaning given the term ‘‘marihuana’’ in section 102 
of the Controlled Substances Act (21 U.S.C. 802). 
(3) CANNABIS PRODUCT.—The term ‘‘cannabis 
product’’ means any article which contains cannabis, 
including an article which is a concentrate, an edi-
ble, a tincture, a cannabis-infused product, or a top-
ical. 
(4) CANNABIS-RELATED
LEGITIMATE
BUSI-
NESS.—The term ‘‘cannabis-related legitimate busi-
ness’’ means a manufacturer, producer, or any per-
son or company that— 
(A) engages in any activity described in 
subparagraph (B) pursuant to a law established
Housing Finance Agency, the Financial Crimes En-
forcement Network, the Office of Foreign Asset 
Control, the Office of the Comptroller of the Cur-
rency, the National Credit Union Administration, 
the Department of the Treasury, or any Federal 
agency or department that regulates banking or fi-
nancial services, as determined by the Secretary of 
the Treasury. 
(7) FINANCIAL SERVICE.—The term ‘‘financial 
service’’— 
(A) means a financial product or service, 
as defined in section 1002 of the Dodd-Frank 
Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5481); 
(B) includes the business of insurance; 
(C) includes, whether performed directly or 
indirectly, the authorizing, processing, clearing, 
settling, billing, transferring for deposit, trans-
mitting, delivering, instructing to be delivered, 
reconciling, collecting, or otherwise effectuating 
or facilitating of payments or funds, where such 
payments or funds are made or transferred by 
any means, including by the use of credit cards, 
debit cards, other payment cards, or other ac-
cess devices, accounts, original or substitute 
checks, or electronic funds transfers; 
(D) includes acting as a money transmit-
ting business which directly or indirectly makes 
use of a depository institution in connection 
with effectuating or facilitating a payment for 
a cannabis-related legitimate business or service 
provider in compliance with section 5330 of 
title 31, United States Code, and any applicable 
State law; and 
(E) includes acting as an armored car 
service for processing and depositing with a de-
pository institution or a Federal reserve bank 
with respect to any monetary instruments (as 
defined under section 1956(c)(5) of title 18, 
United States Code. 
(8) INDIAN COUNTRY.—The term ‘‘Indian coun-
try’’ has the meaning given that term in section 
1151 of title 18. 
(9) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 
has the meaning given that term in section 102 of 
the Federally Recognized Indian Tribe List Act of 
1994 (25 U.S.C. 479a).
(10) INSURER.—The term ‘‘insurer’’ has the 
meaning given that term under section 313(r) of 
title 31, United States Code. 
(11) MANUFACTURER.—The term ‘‘manufac-
turer’’ means a person who manufactures, com-
pounds, converts, processes, prepares, or packages 
cannabis or cannabis products. 
(12) PRODUCER.—The term ‘‘producer’’ means 
a person who plants, cultivates, harvests, or in any 
way facilitates the natural growth of cannabis. 
(13) SERVICE PROVIDER.—The term ‘‘service 
provider’’— 
(A) means a business, organization, or 
other person that— 
(i) sells goods or services to a can-
nabis-related legitimate business; or 
(ii) provides any business services, in-
cluding the sale or lease of real or any 
other property, legal or other licensed serv-
ices, or any other ancillary service, relating 
to cannabis; and 
(B) does not include a business, organiza-
tion, or other person that participates in any 
business or organized activity that involves han-
dling cannabis or cannabis products, including
cultivating, producing, manufacturing, selling, 
transporting, displaying, dispensing, distrib-
uting, or purchasing cannabis or cannabis prod-
ucts. 
(14) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, Puerto 
Rico, and any territory or possession of the United 
States. 
SEC. 15. DISCRETIONARY SURPLUS FUNDS. 
Section 7(a)(3)(A) of the Federal Reserve Act (12 
U.S.C. 
289(a)(3)(A)) 
is 
amended 
by 
striking 
‘‘$6,825,000,000’’ and inserting ‘‘$6,821,000,000’’. 
SEC. 16. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives September 25, 
2019. 
Attest: 
Clerk.
116TH CONGRESS 
1ST SESSION 
H. R. 1595 
AN ACT 
To create protections for depository institutions 
that provide financial services to cannabis-related 
legitimate businesses and service providers for 
such businesses, and for other purposes.