SAFE Banking Act of 2021

Bill: 117-hr-1996
Sponsor: Rep. Perlmutter, Ed [D-CO-7]
Introduced: 2021-03-18 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Asia
Bank accounts, deposits, capital
Banking and financial institutions regulation
Business records
Congressional oversight
Consumer affairs
Credit and credit markets
Criminal investigation, prosecution, interrogation
Department of the Treasury
Drug trafficking and controlled substances
Drug, alcohol, tobacco use
Evidence and witnesses
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve System
Financial services and investments
Fraud offenses and financial crimes
Government information and archives
Government liability
Government studies and investigations
Insurance industry and regulation
Iran
Judicial procedure and administration
Licensing and registrations
Middle East
Minority and disadvantaged businesses
National Credit Union Administration
North Korea
Organized crime
Syria
Terrorism
Women in business

Summary:
action_date: 2021-03-18
text: 

Secure and Fair Enforcement Banking Act of 2021 or the SAFE Banking Act of 2021 

 
This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business. 
 
 Additionally, proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity. Proceeds from unlawful activity are subject to anti-money laundering laws. 
 
Furthermore, a depository institution is not, under federal law, liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business. 
 
The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism. 

action_date: 2021-04-19
text: 

Secure and Fair Enforcement Banking Act of 2021 or the SAFE Banking Act of 2021 

 
This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business. 
 
 Additionally, proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity. Proceeds from unlawful activity are subject to anti-money laundering laws. 
 
Furthermore, a depository institution is not, under federal law, liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business. 
 
The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism. 
 
Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)


Legislative actions:
action_date: 2021-04-20
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2021-04-19
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2021-04-19
text: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 101 (Roll no. 120). (text: CR H1915-1918)
action_date: 2021-04-19
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 321 - 101 (Roll no. 120).(text: CR H1915-1918)
action_date: 2021-04-19
text: Considered as unfinished business. (consideration: CR H1942-1943)
action_date: 2021-04-19
text: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
action_date: 2021-04-19
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 1996.
action_date: 2021-04-19
text: Considered under suspension of the rules. (consideration: CR H1915-1924)
action_date: 2021-04-19
text: Mr. Perlmutter moved to suspend the rules and pass the bill, as amended.
action_date: 2021-03-18
text: Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-03-18
text: Referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2021-03-18
text: Introduced in House
action_date: 2021-03-18
text: Introduced in House