SUPPORT THE SAFE BANKING ACT AND THE SAFER BANKING ACT
BACKGROUND
Many states across the U.S. have initiated the legalization of cannabis in some capacity. Today, 39 states and the District of Columbia have some form of a legal cannabis market. 1
THE ISSUES
As individual states move toward legalizing marijuana for varying purposes, it remains against federal law to grow, sell, possess, or use cannabis products. Participating in any part of the cannabis enterprise can lead to a host of federal violations, creating a conflict of authority. Concerned about compliance requirements, regulated financial institutions – including insurance agencies, brokerages, and companies – have been reluctant to offer financial services to Cannabis-Related Legitimate Businesses or Service Providers (CRLBs).
The Secure and Fair Enforcement (SAFE) Banking Act would prevent regulatory punishment and protect businesses that provide financial services, including insurance, to cannabis institutions. For instance, such businesses lack access to loans, lines of credit, bank accounts, and insurance. This limits all transactions to cash only, putting businesses at risk of a host of criminal and money laundering concerns.
The SAFE Banking Act passed the House 7 times but stalled in the Senate.2 A similar bill in the Senate, The Secure and Fair Enforcement Regulation (SAFER) Banking Act, was passed out of committee in 2023.
OUR POSITION
The Council supports passage of H.R. 2891, the SAFE Banking Act and S. 2860, the SAFER Banking Act to provide a safe harbor for insurance agencies, brokerages and companies operating in states where cannabis is legal.
2 Blumenauer, Joyce, Merkley, Daines, Introduce SAFE Banking Act: 2023
ABOUT US
The Council of Insurance Agents & Brokers is the premier association for the top regional, national and international commercial insurance and employee benefits brokerage firms worldwide. Council members are market leaders who annually place 90 percent of U.S. commercial property/casualty premiums, and 70 percent of all employee benefits business in the U.S.
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