Skip to main content

Looking for Valuant? You are in the right place!

Valuant is now Abrigo, giving you a single source to Manage Risk and Drive Growth

Make yourself at home – we hope you enjoy your new web experience.

Looking for DiCOM? You are in the right place!

DiCOM Software is now part of Abrigo, giving you a single source to Manage Risk and Drive Growth. Make yourself at home – we hope you enjoy your new web experience.

Cannabis in the House

March 29, 2019
Read Time: 0 min

Thursday, the Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act of 2019) advanced by a vote of 45 to 15 in the House Financial Services Committee. The Bill (H.R. 1595) protects financial institutions from regulatory penalties for servicing the cannabis industry – both for seed-to-sale cannabis-related businesses (CRB) and businesses that service the cannabis industry such as consultants and hydroponic bulb manufactures.

The bill offers a safe harbor that prohibits regulators from discouraging financial institutions from serving the cannabis industry. It also prohibits regulators from incentivizing or encouraging financial institutions to not bank CRBs, downgrade services to a CRB, or exit a relationship with a CRB based solely on the fact that they operate in the cannabis industry. Additionally, the bill prohibits examiners from taking adverse or supervisory action on a loan made to a CRB, service provider, employee, owner, operator, or an owner/operator of a real estate business leasing to a CRB or a service provider just because they are involved in the cannabis industry.

Whether your institution is looking to bank CRBs or avoid them, our advisory services team can help.

Speak with an advisor

Most notably, the bill would make proceeds from legitimate businesses in the cannabis industry legal funds under federal money laundering statutes. The bill directs FinCEN and the FFIEC to issue guidance and exam procedures to provide institutions with clarity so they may effectively manage the risks specific to CRBs.

Many industry experts, including the American Banking Association and the Credit Union National Association, view this progress as long overdue and support the continued advancement of H.R. 1595 as it moves to a full vote in the House. 

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.