WASHINGTON A bill introduced in Congress this afternoon would update federal banking laws to provide marijuana-related businesses access to banking and credit union services.
Introduction of the bill comes as dozens of credit unions are debating whether to accept deposits from marijuana growers or dispensaries that sell pot for medicinal purposes. Numerous credit unions have had deposits seized by law enforcement in recent months because they were believed tied to the drug trade, even the lawful one.
The Marijuana Business Access to Banking Act would allow banks, credit unions and other depository institutions the legal clearance to provide banking services to a marijuana-related legitimate business, ensuring these businesses do not have to operate on a cash-only basis, according to Rep. Ed Perlmutter, D-Colo., a members of the House Financial Services Committee and close ally of credit unions.
Under current federal laws, credit unions and banks are barred from providing services to marijuana-related businesses because marijuana is considered a controlled substance and is still illegal under federal law.
The bill addresses the multiple concerns cited by credit unions and banks when denying or revoking the accounts of marijuana businesses and marijuana business owners. Specifically, the bill disallows federal regulators from punishing or penalizing a credit union or bank or its employees because it provides services marijuana-related businesses; exempts depository institutions from persecution and forfeiture simply for providing services to a marijuana-related business; and exempts marijuana-related business accounts from disclosure reporting requirements intended to identify individuals engaging in federally illegal activities.
The bill was introduced by Permutter and Rep. Denny Heck, D-Wash., who are both from states that legalized marijuana use last year. Both states are in the process of developing rules, regulations and tax mechanisms for it. Additionally, 19 other states and Washington, D.C., have approved medical marijuana programs.
The bill would update federal banking rules to resolve conflicts between federal and state laws, promoting community safety and financial security. “We need to address the public safety, crime and lost tax revenue associated when these legal and regulated businesses are operating in a cash-only system,” Perlmutter said. “We also need to provide financial institutions assurance that they can make their own business decisions related to legal, financial transactions without fear of regulatory penalties or criminal prosecution.”
