Secure Banking Act of 2019 – cannabusiness advisory

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1 of the most significant challenges facing the legal cannabis market now (as we’ve covered extensively on this weblog) is access to, or greater however lack of access to, banking solutions. Due to the fact the use and sale of marijuana remains illegal at the federal level, banks and credit unions have been hesitant to give solutions to cannabis-associated enterprises, even in states that have legalized each health-related and recreational cannabis. The concern from a banking viewpoint is that supplying banking solutions to these organizations could potentially lead to allegations of income laundering and aiding and abetting federally-illegal operations. When this has not fully prevented cannabis organizations from operating in states exactly where it is legal, it has forced a burgeoning market to operate on a practically all-money basis, top to quite a few monetary and security issues.

As a prospective answer, in Might 2017 Senator Jeff Merkely (D-OR) and Ed Perlmutter (D-CO) introduced the “Secure and Fair Enforcement (Secure) Banking Act”, which proposed specific protections for banks against criminal and civil liabilities for serving reputable cannabis organizations that operate in compliance with applicable state law. The Secure Banking Act was not only intended to legitimize an up-and-coming market, but also aimed to establish banking guidelines for valid cannabis organizations and to boost public security (not to mention help the views of a majority of Americans). Lots of assume that establishing a uniform set of guidelines will not only make regulation and oversight, but will also market greater transparency into these state-compliant cannabis operations.

The other crucial incentive in passing banking legislation is public security. This is an market that has billions of dollars in transactions, and however is forced to operate practically completely in money. Aside from the logistical challenges that are brought on by not getting bank accounts, forcing organizations to spend anything from employee salaries to rent payments in money can attract criminal behavior. There have been several situations of robbery and violent crime that could have been prevented if cannabis enterprises have been not forced to operate with bags of money.

When the 2017 bill was eventually not productive, it did garner bi-partisan help from politicians and state attorneys common alike. This week, Congress will convene for a different hearing on the Secure Banking Act with quite a few hoping that legislation will be passed to give banks with a secure harbor to give solutions to cannabis organizations that operate legally at the state level. This would not resolve all of the conflicts that exist among state and federal law, but would be a giant stepping stone for an market that is not going away any time quickly.

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