On the eve of 4/20, members of Congress offered up a gift to the budding cannabis industry.
The House of Representatives on Monday passed the SAFE Banking Act of 2021, which clears the way for financial institutions and banks to work with cannabis companies.
The SAFE Banking Act of 2021 “generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business,” according to a summary of the legislation.
“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,” the summary read.
“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.”
It continued: “The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account