{"@context":"https://schema.org","@type":"Legislation","name":"Secure And Fair Enforcement Banking Act of 2021","description":"

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.)

","legislationIdentifier":"HR 1996","legislationType":"Bill","legislationLegalForce":"NotInForce","legislationJurisdiction":"USA","author":[{"@type":"Person","name":"Ed Perlmutter","url":"https://legisdaily.com/mp/ed-perlmutter-us"}],"about":{"@type":"Thing","name":"Finance and Financial Sector"},"keywords":"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, alcohol, tobacco use, Drug trafficking and controlled substances, 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","dateModified":"2025-05-15T00:00:00.000Z","url":"https://legisdaily.com/bill/USA-117-HR-1996"}

Ed Perlmutter

Ed Perlmutter

Financial Services Committee, Judiciary Committee, Banking, Housing, and Urban Affairs Committee