American Bankers Association Sends Letter to Congress Urging Passage of the SAFE Banking Act
In a letter to federal lawmakers, the American Bankers Association (ABA) called for the passage of the SAFE Banking Act – a proposal that seeks to normalize banking access for state-approved cannabis companies. In the letter, Naomi Camper, chief policy officer for the ABA, said the law “would improve public safety, help the government combat illicit finance, and provide a critical measure of certainty in response to the evolving legal landscape by granting cannabis businesses operating in full compliance with state laws access to essential financial services.”
“Although nearly every U.S. state has legalized marijuana in some form, the uncertain legal landscape governing the proceeds of these state-licensed businesses means these businesses frequently operate on a cash basis, outside the regulated banking system.” — Camper, in the letter
Camper added that normalizing banking for cannabis businesses would “remove barriers to banking these funds” and allow funds to flow more freely to non-cannabis businesses that work with the cannabis industry, including accountants, skilled trades, landlords, and law firms.
Further, Camper notes that recent federal changes regarding cannabis – specifically the rescheduling of medical cannabis from Schedule I to Schedule III under the Controlled Substances Act – “underscore the need for Congress to Act.”
“Passing this legislation would reduce illicit finance risk and increase financial transparency for cannabis- and hemp-derived proceeds,” Camper wrote in the letter. “Highly regulated banks and other financial institutions must adhere to stringent anti-money laundering and counter-terrorist financing laws and rules, conduct due diligence regarding their customers, screen transactions for suspicious activity, and keep records.”
Previous versions of the SAFE Banking Act have passed the House seven times, most recently in 2023. The current version of the legislation has been referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, and Veterans’ Affairs.