{"format":1,"id":"117-hr-1996","congress":117,"number":"H.R. 1996","kind":"bill","group":"bills","title":"Secure And Fair Enforcement Banking Act of 2021","title_source":"Short Title(s) as Passed House","official_title":"To create protections for financial institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses, and for other purposes.","titles":[{"type":"Official Title as Introduced","title":"To create protections for financial institutions that provide financial services to cannabis-related legitimate businesses and service providers for such businesses, and for other purposes."},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"SAFE Banking Act of 2021"},{"type":"Short Titles from RFS (Referred to Senate) bill text","title":"Secure And Fair Enforcement Banking Act of 2021"},{"type":"Display Title","title":"Secure And Fair Enforcement Banking Act of 2021"},{"type":"Short Title(s) as Introduced","title":"SAFE Banking Act of 2021"},{"type":"Short Title(s) as Introduced","title":"Secure And Fair Enforcement Banking Act of 2021"},{"type":"Short Title(s) as Passed House","title":"Secure And Fair Enforcement Banking Act of 2021"},{"type":"Short Titles as Passed House","title":"SAFE Banking Act of 2021"}],"outcome":"passed_house","law_number":null,"introduced":"2021-03-18","chambers":{"house":{"status":"roll_call","date":"2021-04-19","vote":{"id":"117-2021-h120","question":"On Motion to Suspend the Rules and Pass, as Amended","title":"SAFE Banking Act","result":"Passed","yea":321,"nay":101,"present":0,"not_voting":7,"source":"https://clerk.house.gov/evs/2021/roll120.xml"}},"senate":{"status":"na","date":null,"vote":null}},"president":{"status":"na","date":null},"vice_president_tie_breaker":null,"latest_action":{"text":"Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.","date":"2021-04-20"},"nominees":null,"amendments":[],"other_votes":[],"crs_summary":{"date":"2021-04-19","stage":"Passed House","blocks":[{"k":"h","t":"Secure and Fair Enforcement Banking Act of 2021 or the SAFE Banking Act of 2021"},{"k":"p","t":"This bill generally prohibits a federal banking regulator from penalizing a depository institution for providing banking services to a legitimate cannabis-related business. Prohibited penalties include terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides financial services to a legitimate cannabis-related business and prohibiting or otherwise discouraging a depository institution from offering financial services to such a business."},{"k":"p","t":"Additionally, proceeds from a transaction involving activities of a legitimate cannabis-related business are not considered proceeds from unlawful activity. Proceeds from unlawful activity are subject to anti-money laundering laws."},{"k":"p","t":"Furthermore, a depository institution is not, under federal law, liable or subject to asset forfeiture for providing a loan or other financial services to a legitimate cannabis-related business."},{"k":"p","t":"The bill also provides that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism."},{"k":"p","t":"Finally, the bill decreases the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)"}],"words":231},"summary":{"main_subject":{"text":"Limits federal penalties and liability for banks, credit unions, insurers and related entities that provide financial services to cannabis-related and hemp-related businesses and their service providers, and sets related guidance, reporting and study requirements.","cites":[{"label":"Sec. 2","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-HFCF5E94E84F946E2A6234A5C77810233"},{"label":"Sec. 4","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H0374A6F6BDE44FDB8A5E3FC05E28D662"},{"label":"Sec. 11","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H119B10E229DB4D45A3C6A9154A6F1C34"}]},"core_areas":["Federal banking regulator limits on action against depository institutions serving cannabis-related businesses","Money laundering and forfeiture protections for financial services to cannabis-related businesses","Suspicious activity report guidance and examination procedures","Banking services for hemp-related businesses","Deposit account termination requests and orders","Reports and studies on minority-owned and women-owned cannabis-related businesses"],"what_it_does":[{"text":"Bars a Federal banking regulator from terminating or limiting deposit insurance or share insurance, or taking other adverse action, against a depository institution solely because it provides financial services to a cannabis-related legitimate business or service provider.","cite":{"label":"Sec. 2","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-HFCF5E94E84F946E2A6234A5C77810233"}},{"text":"Provides that proceeds from a transaction involving activities of a cannabis-related legitimate business or service provider are not considered proceeds from an unlawful activity under sections 1956 and 1957 of title 18 and other Federal law solely because of those activities.","cite":{"label":"Sec. 3","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H3A07F8078B3A4D008CCA7C92F082BF6F"}},{"text":"Provides that a depository institution, insurer, Federal reserve bank or Federal Home Loan Bank, and their officers, directors and employees, may not be held liable under Federal law solely for providing financial services or insurance to such businesses, and that collateral interests are not subject to Federal forfeiture for providing such loans or services.","cite":{"label":"Sec. 4","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H0374A6F6BDE44FDB8A5E3FC05E28D662"}},{"text":"Requires the Secretary to update the February 14, 2014, Financial Crimes Enforcement Network guidance \"BSA Expectations Regarding Marijuana-Related Businesses\" (FIN–2014–G001) within 180 days of enactment, and requires suspicious transaction reports tied to such businesses to comply with Financial Crimes Enforcement Network guidance.","cite":{"label":"Sec. 6","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H28B332F734B7491D949B3C5D0ACD49FA"}},{"text":"Requires the Financial Institutions Examination Council to develop uniform guidance and examination procedures within 180 days of enactment for depository institutions that provide financial services to cannabis-related legitimate businesses and service providers.","cite":{"label":"Sec. 7","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H6222172F92F440CEA2D1D4CA2E876F75"}},{"text":"Bars an appropriate Federal banking agency from requesting or ordering a depository institution to terminate a customer account unless the agency has a valid reason that is not based solely on reputation risk, and requires a written justification and an annual report to Congress.","cite":{"label":"Sec. 13","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-HCA8CCB286A074FBBA2A019CAEB8C3C85"}}],"unexpected":[{"category":"off_subject","items":[{"cite":{"label":"Sec. 10","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-HAE01213EF9F6444DBB9B6255AE0FB768"},"heading":"GAO study on effectiveness of certain reports on finding certain persons","effect":"Requires the Comptroller General to study how effective suspicious transaction reports are at finding people or organizations tied to transnational criminal organizations, including in States that allow cannabis.","amount":null,"quote":"at finding individuals or organizations suspected or known to be engaged with transnational criminal organizations and whether any such engagement exists in a State"},{"cite":{"label":"Sec. 15","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh#toc-H842D7AA1ED77485B9C7BD0FA635F0B31"},"heading":"Discretionary surplus funds","effect":"Amends section 7(a)(3)(A) of the Federal Reserve Act to reduce the dollar figure there by $6,000,000, which concerns Federal Reserve surplus funds rather than banking services for cannabis-related businesses.","amount":"$6,000,000","quote":"Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by reducing the dollar figure by $6,000,000."}]}],"version":{"type":"Engrossed in House","date":"2021-04-19","rule":"passed","href":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text/eh"},"current":true,"model":"claude-sonnet-5-5","approved":"2026-10-15","approved_by":"checks"},"sources":{"congress_gov":"https://www.congress.gov/bill/117th-congress/house-bill/1996","text":"https://www.congress.gov/bill/117th-congress/house-bill/1996/text"},"card":{"image":"card/item/117-hr-1996.png","v":"1d5ea2055df0","alt":"Votes on Record. H.R. 1996, 117th Congress: Secure And Fair Enforcement Banking Act of 2021. House: 321 Yea, 101 Nay. Outcome: Passed House, 19 Apr 2021."}}