Jump to content

House passes SAFE banking act for cannabis commerce


KLAW Blog

Recommended Posts

The U.S. house just passed the The SAFE Banking Act (H.R.1996 — 117th Congress 2021-2022). The act would establish a safe space for financial institutions to engage in cannabis commerce.

See the roll call and data of the vote here.

The SAFE Banking Act is a first step in ensuring that state regulated markets can operate openly in the banking system. Still according to federal law these state markets are running a criminal enterprise as marijuana is still (as of 4/20/21) on the controlled substance list as a CS1. But the IRS still want it’s money anyway and reminded marijuana businesses through the IRS 280E that they are illegal and still have to pay taxes.

Summary: H.R.1996 — 117th Congress (2021-2022)

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.

hemp-cannabis-cbd-007.jpg

Starting A Cannabis Business?

Start it right from the beginning – by choosing the right legal team

Komorn Law – Research it

Komorn Law Social Media

Recent Posts

Tag Cloud

2020 2021 autism BMMR cannabis CBD corona virus corruption. prosecutors covid-19 DEA detroit dispensary DUI expungement forfeiture ginnifer hency hemp komorn komornlaw lara LARA ALERTS LARA Bulletin LARA FAQ law enforcement abuse laws legal Legalization marijuana medical Medical Marijuana Michigan MMFLA MMMA MMMA Regulations MRA news police politics Recreational Cannabis science shattuck supreme court Thue victory Vote

DISCLAIMER
This post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas and general internet BS. Therefore…Before you believe anything on the internet regarding anything – do your research on Official Government and State Sites, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain.

The post House passes SAFE banking act for cannabis commerce appeared first on Komorn Law.

View the full article

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
×
×
  • Create New...