Congressman Blumenauer commends federal laws to allow hashish corporations to entry banking providers – MJNews Community
Under the SAFE Banking Act, cannabis companies would not have to operate with cash, which has made businesses and workers in the Portland area a target for violent robbery.
DISTRICT OF COLUMBIA: On April 19, 2021, the U.S. House of Representatives passed federal law to give legitimate cannabis companies access to banking services. This issue has long been represented by US Representative Earl Blumenauer (D-OR), founder and fellow campaigner, chairman of the Congress Cannabis Caucus. The bipartisan passage of the Secure And Fair Enforcement (SAFE) Banking Act at the 117th Congress came because cannabis companies in the Portland area and their workers remained exposed to violent robbery that has been linked to a system almost exclusively used by cannabis companies Trade forces in cash.
“Cannabis will soon be a $ 20 billion industry and will be largely supported by the American public. The insane ban on banking services does not serve anyone, except money launderers, tax evaders or those who will rob these cash-rich businesses, “said Blumenauer. “As we continue to drive full legalization, combating this irrational, unfair and insecure denial of banking services is a top priority for state-legal cannabis companies. This is a critical element of reform that cannot wait, and I urge our Senate cannabis champions to get this legislation into effect ASAP. “
According to the federal ban on cannabis, banks and credit unions are currently prohibited from serving cannabis companies, even with financial products such as savings accounts or payrolls. Regardless of the financial and practical difficulties legal cannabis companies face, the obligation on these companies to operate only with cash puts public safety at risk and makes it difficult to track revenues for tax purposes.
The cash-only nature of cannabis companies also makes them easy and common targets for robbery, putting workers at risk. According to a March 2021 Willamette Week report, cannabis stores in Portland have been robbed, broken into or looted – often at gunpoint – 95 times in the past 10 months, resulting in one tragic death.
Laws passed in the House of Representatives would prohibit federal regulators from taking punitive action against depositaries who provide banking services to legitimate cannabis companies and ancillary businesses such as electricians, plumbers, and landlords who serve them. The SAFE Banking Act also requires a GAO study and annual regulatory reports to Congress to ensure equal access to credit and remove barriers to entry for potential and existing minority and women-owned cannabis companies.
The full text of the SAFE Banking Act can be found here.