Crapo Outlines Five Options to Address Concerns with Cannabis Banking Legislation
Recently, Senate Banking Committee Chairman Mike Crapo (R-Idaho) announced his opposition to the Secure and Fair Enforcement (SAFE) Banking Act of 2019, which was introduced by Rep. Ed Perlmutter (D-Colo.) in March and passed the House of Representatives in September by a bipartisan vote of 321-103.
At a Senate Committee hearing in July, entitled “Challenges for Cannabis and Banking: Outside Perspectives,” Crapo brought forth several concerns, specifically concerning public health and safety issues, legacy cash and money laundering, FinCEN guidance and rulemaking, interstate commerce and banking, and initiatives like “Operation Choke Point,” launched by the U.S. Department of Justice in 2013.
Now, in a December 18 press release, Crapo has proposed five potential options for addressing his concerns with the legislation as proposed and passed by the House:
- Add public health and safety solutions as a requirement for banks to do business with legally-operating state cannabis companies.
- Add provisions that ensure bad actors and cartels are unable to use legacy cash and the financial system to disguise black market sales or launder money.
- Update 2014 FinCEN rulemaking and guidance to ensure that FinCEN can prosecute money laundering and conduct rulemaking.
- Respect state rights in interstate commerce and banking for institutions who operate in multiple states with different rules.
- Eliminate “Operation Choke Point” and prevent future similar initiatives.
Crapo has also requested public feedback on five issues related to the above concerns.