Daines Reintroduces Bill To Support Small Businesses
U.S. Sen. Steve Daines, R-Mont.,, has reintroduced a bipartisan bill, the “Secure and Fair Enforcement Banking Act,” to ensure that legal cannabis businesses have access to banks, credit unions and other financial institutions. Currently, many legal cannabis businesses must conduct all of their business entirely in cash, opening them up to theft, tax evasion and organized crime.
“Montanans should be able to conduct their small business without fearing for their safety,” Daines said. “Our bipartisan bill would provide the security and peace of mind that legal Montana cannabis businesses need to freely use banks, credit unions and other financial products without a fear of punishment. This bill will help keep our Montana communities safe, keep crime off the streets, support Montana law enforcement and small businesses and bolster local economies.”
Most state legal medicinal or recreational cannabis businesses are denied access to the banking system because banks fear they may be prosecuted under federal law given the ongoing federal restrictions on cannabis. The lack of access to bank accounts, credit cards and checks have forced state legal cannabis businesses to operate in cash, opening the door to tax evasion and to a dangerous pattern of robberies.
To address the safety concerns resulting from these state legal businesses being shut out of banking services, the “SAFE Banking Act” would prevent federal banking regulators from: * Prohibiting, penalizing or discouraging a bank from providing financial services to a legitimate state-sanctioned and regulated cannabis business, or an associated business (such as a lawyer or landlord providing services to a legal cannabis business) * Terminating or limiting a bank’s federal deposit insurance solely because the bank is providing services to a state-sanctioned cannabis business or associated business * Recommending or incentivizing a bank to halt or downgrade providing any kind of banking services to these businesses * Taking any action on a loan to an owner or operator of a cannabis-related business.
The bill also creates a safe harbor from criminal prosecution and liability and asset forfeiture for banks and their officers and employees who provide financial services to legitimate, state-sanctioned cannabis businesses, while maintaining banks’ right to choose not to offer those services. Hemp and hemp-derived CBD related businesses are covered under this proposal as well.
The bill would require banks to comply with current Financial Crimes Enforcement Network (Fin-CEN) guidance, while at the same time allowing FinCEN guidance to be streamlined over time as states and the federal government adapt to legalized medicinal and recreational cannabis policies.
