SAFE BANKING ACT

Mark Campanale Government Relations, Government Relations Updates, Members Only

Monday evening, April 19th the House passed H.R. 1996—the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act) with bi-partisan support. While the primary focus of this bill is to allow banks to provide services to legitimate cannabis-related businesses an additional provision is included that could benefit other industries. 

For years the pawn industry has experienced bank discontinuance of accounts and services, and especially during the ‘operation choke point’ time. H.R. 1996 provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless 1) there is a valid reason for doing so, and 2) that reason is not based solely on reputation risk. Valid reasons include threats to national security and involvement in terrorist financing. 

A related Senate bill, S. 910, is now in the Committee on Banking, Housing and Urban Affairs. Read more…