On March 9th CUNA wrote in support of recently introduced legislation – the Secure and Fair Enforcement (SAFE) Banking Act of 2019 which would permit credit unions in states where marijuana is legal to safely serve their members’ related needs. And while one may wonder why one would care about this in Georgia, the state Legislature has two bills that address the possibility of expanding the laws in this state to allow for regulated hemp farming, as well as the cultivation of low-THC oil. These people and entities will need financial services, and this federal bill will address a significant hurdle for credit unions and banks.
Regardless how one feels about legalizing medicinal or recreational cannabis, credit unions operating in states where this is legal have challenges, as while the cannabis, hemp or low-THC oil may be legal, action on a federal level is necessary to clear up the issues surrounding their (and the people who work at these places) access to traditional depository and lending services.
The SAFE Banking Act of 2019 would offer narrowly targeted federal protections for credit unions and other financial institutions accepting deposits, extending credit, or providing payment services to an individual or business engaged in cannabis-related commerce in states where such activity is legal with a safe harbor, so long as they are compliant with all other applicable laws and regulations. Furthermore, the SAFE Banking Act provides safe harbor to credit unions and their employees who are not aware if their members or customers are involved in this business.
Many credit unions operate in states where their voters or legislatures have made cannabis legal in one form or another, and Georgia is one that has serious bills moving that would expand. Financial institutions should be permitted to lawfully serve businesses that engage in activities that are authorized under their state laws, even when such activity may be inconsistent with federal law.
