SAFE Banking Act of 2023

Bill: 118-hr-2891
Sponsor: Rep. Joyce, David P. [R-OH-14]
Introduced: 2023-04-26 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: 2023-04-26
text: 

 
 
 

Secure and Fair Enforcement Banking Act of 2023 or the SAFE Banking Act of 2023 
 
 
This bill provides protections for federally regulated financial institutions that serve state-sanctioned marijuana businesses. Currently, many financial institutions do not provide services to state-sanctioned marijuana businesses due to the federal classification of marijuana as a Schedule I controlled substance. 
 
Under the bill, a federal banking regulator may not penalize a depository institution for providing banking services to a state-sanctioned marijuana business. For example, regulators may not terminate or limit the deposit or share insurance of a depository institution solely because the institution provides financial services to a state-sanctioned marijuana business.
 
The bill also prohibits a federal banking regulator from requesting or ordering a depository institution to terminate a customer account unless (1) the regulator has determined that the depository institution is engaging in an unsafe or unsound practice or is violating a law or regulation, and (2) that determination is not based primarily on reputation risk. 
 
Additionally, proceeds from a transaction involving activities of a state-sanctioned marijuana business are no longer considered proceeds from unlawful activity. (Financial institutions that handle proceeds from unlawful activity are subject to anti-money laundering laws. Violators of these laws are subject to fines and imprisonment.)
 
Furthermore, a financial institution, insurer, or federal agency may not be held liable or subject to asset forfeiture under federal law for providing a loan, mortgage, or other financial service to a state-sanctioned marijuana business.


Legislative actions:
action_date: 2023-05-03
text: Referred to the Subcommittee on Economic Opportunity.
action_date: 2023-04-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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: 2023-04-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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: 2023-04-26
text: Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans' Affairs, 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: 2023-04-26
text: Introduced in House
action_date: 2023-04-26
text: Introduced in House