,,ii #aahth ,,congress #ast ,session ,s4 #bhfj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bj1 #bjbc,mr4 ,merkley 7for himself1 ,mr4 ,daines1 ,mr4 ,schumer1 ,ms4 ,sinema1 ,ms4 ,lummis1 ,mr4 ,cramer1 ,mr4 ,booker1 ,mr4 ,sullivan1 ,mr4 ,menendez1 ,mr4 ,king1 ,mr4 ,wyden1 ,ms4 ,rosen1 and ,mr4 ,fetterman7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to create protections for financial institutions that provide financial services to ,state-sanctioned marijuana businesses and service providers for such businesses1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,secure ,and ,fair ,enforcement ,regulation ,banking ,act or the ,,safer ,banking ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,definitions4,sec4 #c4 ,safe harbor for depository institutions4,sec4 #d4 ,protections for providing services to ,state-sanctioned marijuana businesses4,sec4 #e4 ,protections under ,federal law4,sec4 #f4 ,requirements for filing suspicious activity reports4,sec4 #g4 ,guidance and examination procedures4,sec4 #h4 ,banking services for hemp-related legitimate businesses and hemp-related service providers4,sec4 #i4 ,treatment of income derived from a ,state-sanctioned marijuana business for qualification for a covered mortgage loan4,sec4 #aj4 ,requirements for deposit accounts4,sec4 #aa4 ,annual access to financial services report4,sec4 #ab4 ,,gao study on barriers to marketplace entry4,sec4 #ac4 ,,gao study on effectiveness of certain reports on finding certain persons4,sec4 #ad4 ,applicability to hemp-related legitimate businesses and hemp-related service providers4,sec4 #ae4 ,rules of construction4 #b4 ,definitions ,in this ,act3 7#a7 ,business of insurance ,the term business of insurance has the meaning given the term in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 7#b7 ,,cbd ,the term ,,cbd means cannabidiol4 7#c7 ,community development financial institution ,the term community development financial institution has the meaning given the term in section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#d7 ,depository institution ,except where otherwise expressly provided1 the term depository institution-- 7,a7 means-- 7i7 a depository institution1 as defined in section #c7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7;c772 7ii7 a ,federal credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 and 7iii7 a ,state credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 and 7,b7 includes any minority depository institution1 as defined in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note74 7#e7 ,federal banking regulator ,the term ,federal banking regulator means each of the ,board of ,governors of the ,federal ,reserve ,system1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,deposit ,insurance ,corporation1 the ,federal ,housing ,finance ,agency1 the ,office of the ,comptroller of the ,currency1 the ,national ,credit ,union ,administration1 the ,department of the ,treasury 7including the ,financial ,crimes ,enforcement ,network and the ,office of ,foreign ,assets ,control71 or any ,federal agency or department that regulates banking or financial services1 as determined by the ,secretary of the ,treasury4 7#f7 ,financial product or service ,the term financial product or service has the meaning given the term in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #edha74 7#g7 ,financial service ,the term financial service-- 7,a7 means-- 7i7 a financial product or service1 regardless of whether the customer receiving the product or service is a consumer or commercial entity2 or 7ii7 a financial product or service1 or any combination of products and services1 permitted to be provided by-- 7,i7 a national bank or a financial subsidiary pursuant to the authority provided under-- 7aa7 the paragraph designated as the ,seventh of section #eacf of the ,revised ,statutes 7#ab ,u4,s4,c4 #bd72 or 7bb7 section #eacf;,a of the ,revised ,statutes 7#ab ,u4,s4,c4 #bd;a72 7,,ii7 a ,federal credit union1 pursuant to the authority provided under the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq472 or 7,,iii7 a community development financial institution2 and 7,b7 includes-- 7i7 the business of insurance2 7ii7 whether performed directly or indirectly1 the authorizing1 processing1 clearing1 settling1 billing1 transferring for deposit1 transmitting1 delivering1 instructing to be delivered1 reconciling1 collecting1 or otherwise effectuating or facilitating the payment of funds that are made or transferred by any means1 including by the use of credit cards1 debit cards1 other payment cards1 or other access devices1 accounts1 original or substitute checks1 or electronic funds transfers2 7iii7 acting as a money transmitting business that directly or indirectly makes use of a depository institution in connection with effectuating or facilitating a payment for a ,state-sanctioned marijuana business or service provider in compliance with section #eccj of title #ca1 ,united ,states ,code1 and any applicable ,state or ,tribal law2 and 7iv7 acting as an armored car service for processing and depositing with a depository institution or a ,federal reserve bank with respect to any monetary instruments1 as defined in section #aief7;c77#e7 of title #ah1 ,united ,states ,code4 7#h7 ,hemp ,the term hemp has the meaning given the term in section #big;,a of the ,agricultural ,marketing ,act of #aidf 7#g ,u4,s4,c4 #afcio74 7#i7 ,hemp-related legitimate business ,the term hemp-related legitimate business means a manufacturer1 producer1 or any person or company that-- 7,a7 engages in any activity described in subparagraph 7,b7 in conformity with the ,agriculture ,improvement ,act of #bjah 7,public ,law #aae-ccd2 #acb ,stat4 #ddij71 amendments made by that ,act1 and the regulations issued to implement that ,act by the ,department of ,agriculture1 where applicable1 and the law of a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state2 and 7,b7 participates in any business or organized activity that involves handling hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products1 including cultivating1 producing1 extracting1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products4 7#aj7 ,hemp-related service provider ,the term hemp-related service provider-- 7,a7 means a business1 organization1 or other person that-- 7i7 sells goods or services to a hemp-related legitimate business2 or 7ii7 provides any business services1 including the sale or lease of real or any other property1 legal or other licensed services1 or any other ancillary service1 relating to hemp1 hemp-derived ,,cbd products1 or other hemp-derived cannabinoid products2 and 7,b7 does not include a business1 organization1 or other person that participates in any business or organized activity that involves handling hemp1 hemp-derived ,,cbd products1 or other hemp-derived cannabinoid products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing hemp1 hemp-derived ,,cbd products1 and other hemp-derived cannabinoid products4 7#aa7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given the term ,indian tribe in section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #eacj74 7#ab7 ,insurer ,the term insurer has the meaning given the term in section #cac7r7 of title #ca1 ,united ,states ,code4 7#ac7 ,manufacturer ,the term manufacturer means a person who manufactures1 compounds1 converts1 processes1 prepares1 or packages marijuana or marijuana products4 7#ad7 ,marijuana ,the term marijuana has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb74 7#ae7 ,marijuana product ,the term marijuana product means any article that contains marijuana1 including an article that is a concentrate1 an edible1 a tincture1 a marijuana-infused product1 or a topical4 7#af7 ,producer ,the term producer means a person who plants1 cultivates1 harvests1 or in any way facilitates the natural growth of marijuana4 7#ag7 ,service provider ,the term service provider-- 7,a7 means a business1 organization1 or other person that-- 7i7 sells goods or services to a ,state-sanctioned marijuana business2 or 7ii7 provides any business services1 including the sale or lease of real or any other property1 legal or other licensed services1 or any other ancillary service1 relating to a ,state-sanctioned marijuana business2 and 7,b7 does not include a business1 organization1 or other person that participates in any business or organized activity that involves handling marijuana or marijuana products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing marijuana or marijuana products4 7#ah7 ,state ,the term ,state means each of the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 and any territory or possession of the ,united ,states4 7#ai7 ,state-sanctioned marijuana business ,the term ,state-sanctioned marijuana business means a manufacturer1 producer1 or any person that-- 7,a7 engages in any activity described in subparagraph 7,b7 pursuant to a law established by a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state1 as determined by such ,state1 ,indian ,tribe1 or political subdivision2 and 7,b7 participates in any business or organized activity that involves handling marijuana or marijuana products1 including cultivating1 producing1 manufacturing1 selling1 transporting1 displaying1 dispensing1 distributing1 or purchasing marijuana or marijuana products4 #c4 ,safe harbor for depository institutions 7a7 ,prohibition ,a ,federal banking regulator may not-- 7#a7 terminate or limit the deposit insurance or share insurance of a depository institution under the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 or the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq47 or take any other adverse action against a depository institution under the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 or the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq47 solely because the depository institution provides or has provided financial services to a ,state-sanctioned marijuana business or service provider2 7#b7 prohibit a depository institution from providing1 or penalize a depository institution for providing1 financial services to-- 7,a7 a ,state-sanctioned marijuana business or service provider solely because the business or service provider is a ,state-sanctioned marijuana business or service provider2 or 7,b7 a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state solely because that entity exercises jurisdiction over ,state-sanctioned marijuana businesses2 7#c7 recommend1 incentivize1 or encourage a depository institution not to offer financial services to an account holder1 or to downgrade or cancel the financial services offered to an account holder1 solely because-- 7,a7 the account holder is a ,state-sanctioned marijuana business or service provider1 or is an employee1 owner1 or operator of a ,state-sanctioned marijuana business or service provider2 7,b7 the account holder later becomes an employee1 owner1 or operator of a ,state-sanctioned marijuana business or service provider2 or 7,c7 the depository institution was not aware1 after conducting sufficient risk-based customer due diligence in accordance with applicable requirements1 that the account holder is an employee1 owner1 or operator of a ,state-sanctioned marijuana business or service provider2 7#d7 take any adverse or corrective supervisory action on a loan made to-- 7,a7 a ,state-sanctioned marijuana business or service provider1 solely because the business is a ,state-sanctioned marijuana business or service provider2 7,b7 an employee1 owner1 or operator of a ,state-sanctioned marijuana business or service provider1 solely because the employee1 owner1 or operator is employed by1 owns1 or operates a ,state-sanctioned marijuana business or service provider1 as applicable2 or 7,c7 an owner or operator of real estate or equipment that is leased to a ,state-sanctioned marijuana business or service provider1 solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a ,state-sanctioned marijuana business or service provider1 as applicable2 or 7#e7 prohibit a depository institution 7or entity performing a financial service for or in association with a depository institution7 from1 or penalize a depository institution 7or entity performing a financial service for or in association with a depository institution7 for1 engaging in a financial service for a ,state-sanctioned marijuana business or service provider solely because the business or service provider is a ,state-sanctioned marijuana business or service provider4 7b7 ,safe harbor applicable to de novo institutions ,subsection 7a7 shall apply to an institution applying for a depository institution charter to the same extent as such subsection applies to a depository institution4 #d4 ,protections for providing services to ,state-sanctioned marijuana businesses ,for the purposes of sections #aief and #aieg of title #ah1 ,united ,states ,code1 and all other provisions of ,federal law1 the proceeds from marijuana-related activities of a ,state-sanctioned marijuana business or service provider that conducts all of its marijuana-related activity in compliance with the marijuana-related law of the ,state1 ,indian ,tribe1 or political subdivision of the ,state shall not be considered proceeds from an unlawful activity solely because-- 7#a7 the transaction involves proceeds from a ,state-sanctioned marijuana business or service provider2 or 7#b7 the transaction involves proceeds from-- 7,a7 marijuana-related activities described in section #b7ai77;,b7 conducted by a ,state-sanctioned marijuana business2 or 7,b7 activities described in section #b7ag77;,a7 conducted by a service provider4 #e4 ,protections under ,federal law 7a7 ,in general ,with respect to providing a financial service to a ,state-sanctioned marijuana business 7where such ,state-sanctioned marijuana business operates within a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of marijuana pursuant to a law or regulation of such ,state1 ,indian ,tribe1 or political subdivision1 as applicable7 or a service provider 7wherever located71 a depository institution1 an entity performing a financial service for or in association with a depository institution1 a community development financial institution1 or an insurer that provides a financial service to a ,state-sanctioned marijuana business or service provider1 and the officers1 directors1 employees1 and agents of that depository institution1 entity1 community development financial institution1 or insurer may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for providing such a financial service2 or 7#b7 for further investing any income derived from such a financial service4 7b7 ,protections for ,federal reserve banks and ,federal ,home ,loan ,banks ,with respect to providing a service to a depository institution that provides a financial service to a ,state-sanctioned marijuana business 7where such ,state-sanctioned marijuana business operates within a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of marijuana pursuant to a law or regulation of such ,state1 ,indian ,tribe1 or political subdivision1 as applicable7 or service provider 7wherever located71 a ,federal reserve bank or ,federal ,home ,loan ,bank1 and the officers1 directors1 and employees of the ,federal reserve bank or ,federal ,home ,loan ,bank1 may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for providing such a service2 or 7#b7 for further investing any income derived from such a service4 7c7 ,protections for insurers ,with respect to engaging in the business of insurance within a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of marijuana pursuant to a law or regulation of such ,state1 ,indian ,tribe1 or political subdivision1 as applicable1 an insurer that engages in the business of insurance with a ,state-sanctioned marijuana business or service provider or that otherwise engages with a person in a transaction permissible pursuant to a law 7including regulations7 of such ,state1 ,indian ,tribe1 or political subdivision related to marijuana1 and the officers1 directors1 and employees of that insurer1 may not be held liable pursuant to any ,federal law or regulation-- 7#a7 solely for engaging in the business of insurance2 or 7#b7 for further investing any income derived from the business of insurance4 7d7 ,forfeiture 7#a7 ,depository institutions and community development financial institutions ,a depository institution or community development financial institution that has a legal interest in the collateral for a loan or another financial service provided to an owner1 employee1 or operator of a ,state-sanctioned marijuana business or service provider1 or to an owner or operator of real estate or equipment that is leased or sold to a ,state-sanctioned marijuana business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law solely for providing such loan or other financial service4 7#b7 ,federal reserve banks and ,federal ,home ,loan ,banks ,a ,federal reserve bank or ,federal ,home ,loan ,bank that has a legal interest in the collateral for a loan or another financial service provided to a depository institution that provides a financial service to a ,state-sanctioned marijuana business or service provider1 or to an owner or operator of real estate or equipment that is leased or sold to a ,state-sanctioned marijuana business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law for providing such loan or other financial service4 7#c7 ,federal national mortgage association1 federal home loan mortgage corporation1 and federal agencies making1 insuring1 or guaranteeing mortgage loans or securities ,the ,federal ,national ,mortgage ,association1 the ,federal ,home ,loan ,mortgage ,corporation1 and any ,federal agency that has a legal interest in the collateral for a residential mortgage loan1 including individual units of condominiums and cooperatives1 provided that the collateral is a property designed principally for the occupancy of #a to #d families and underwritten1 in whole or in part1 based on income from a ,state-sanctioned marijuana business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law for providing1 insuring1 guaranteeing1 purchasing1 securitizing1 or guaranteeing payments from a security based on such loan4 7#d7 ,other parties to mortgage loans ,a nondepository lender that makes a covered mortgage loan1 as defined in section #i7;a71 and any person who otherwise has a legal interest in such a loan or in the collateral of the loan1 including individual units of condominiums and cooperatives1 provided that the collateral is a property designed principally for the occupancy of #a to #d families and underwritten1 in whole or in part1 based on income from a ,state-sanctioned marijuana business or service provider1 shall not be subject to criminal1 civil1 or administrative forfeiture of that legal interest pursuant to any ,federal law for providing1 purchasing1 securitizing1 accepting1 and making payments related to such covered mortgage loan solely because loan payments or underwriting are based on income that is in whole or in part from a ,state-sanctioned marijuana business or service provider4 7#e7 ,definition ,in this subsection1 the term collateral does not include marijuana or a marijuana product4 #f4 ,requirements for filing suspicious activity reports ,section #ecah7;g7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating paragraph 7#aa7 as paragraph 7#ab72 and 7#b7 by inserting after paragraph 7#aj7 the following 7#aa7 ,requirements for ,state-sanctioned marijuana businesses 7,a7 ,in general ,with respect to a financial institution1 or any director1 officer1 employee1 or agent of a financial institution1 that reports a suspicious transaction pursuant to this subsection1 if the reason for the report relates to a ,state-sanctioned marijuana business or service provider1 the report shall comply with appropriate guidance issued by the ,secretary of the ,treasury4 ,not later than the end of the #ahj-;day period beginning on the date of enactment of the ,secure ,and ,fair ,enforcement ,regulation ,banking ,act1 the ,secretary shall amend the ,february #ad1 #bjad1 guidance titled ,,bsa ,expectations ,regarding ,marijuana-,related ,businesses 7,,fin-#bjad-;,g#jja7 or issue new guidance to ensure consistency with the purpose and intent of the ,secure ,and ,fair ,enforcement ,regulation ,banking ,act1 and the amendments made by that ,act1 and that such guidance ensures that a financial institution1 and any director1 officer1 employee1 or agent of a financial institution1 continues to report suspicious transactions pursuant to this subsection1 as applicable1 relating to ,state-sanctioned marijuana businesses and service providers to preserve the ability of the ,financial ,crimes ,enforcement ,network to prevent and combat illicit activity4 7,b7 ,definitions ,in this paragraph3 7i7 ,financial service2 service provider2 ,state2 ,state-sanctioned marijuana business ,the terms financial service1 service provider1 ,state1 and ,state-sanctioned marijuana business have the meanings given the terms in section #b of the ,,safer ,banking ,act4 7ii7 ,indian country ,the term ,indian country has the meaning given the term in section #aaea of title #ah4 7iii7 ,indian ,tribe ,the term ,indian ,tribe has the meaning given the term ,indian tribe in section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid 7#be ,u4,s4,c4 #eacj74 7iv7 ,marijuana ,the term marijuana has the meaning given the term marihuana in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb74 4 #g4 ,guidance and examination procedures 7a7 ,uniform guidance and examination procedures ,not later than #a year after the date of enactment of this ,act1 the ,federal ,financial ,institutions ,examination ,council1 in consultation with the ,department of the ,treasury1 shall develop uniform guidance and examination procedures for depository institutions that provide financial services to ,state-sanctioned marijuana businesses and service providers4 7b7 ,legacy deposits ,the guidance and examination procedures described in subsection 7a7 shall permit a depository institution to accept a deposit of currency from a ,state-sanctioned marijuana business if-- 7#a7 the business received the currency during the #ij-;day period ending on the date on which the business commenced its relationship with the depository institution2 7#b7 the business provided the depository institution with records sufficient to demonstrate the source of the currency being deposited by the business2 7#c7 the amount of the currency is reasonable in light of the expected revenue of the business1 as determined by the depository institution consistent with the risk-based procedures for ensuring compliance with the section #ecah7;h7 of title #ca1 ,united ,states ,code1 and any applicable regulations implementing that section2 and 7#d7 the depository institution complies with any other applicable reporting requirements pursuant to subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 and any applicable regulations implementing that subchapter4 #h4 ,banking services for hemp-related legitimate businesses and hemp-related service providers 7a7 ,findings ,congress finds that-- 7#a7 section #abfai of the ,agriculture ,improvement ,act of #bjah 7,public ,law #aae-ccd2 #acb ,stat4 #ejah7 legalized hemp by removing it from the definition of marihuana under section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb72 7#b7 despite the legalization of hemp1 some hemp businesses 7including producers1 manufacturers1 and retailers7 continue to have difficulty gaining access to banking products and services2 and 7#c7 businesses involved in the sale of hemp-derived ,,cbd products are particularly affected1 due to confusion about the legal status of such products4 7b7 ,definition ,in this section1 the term financial institution-- 7#a7 has the meaning given the term in section #ecab7;a7 of title #ca1 ,united ,states ,code2 and 7#b7 includes a bank holding company1 as defined in section #b7;a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7;a774 7c7 ,federal banking regulators' hemp banking guidance ,not later than the end of the #ahj-;day period beginning on the date of enactment of this ,act1 each ,federal banking regulator shall update guidance1 as in effect on the date of enactment of this ,act1 regarding providing financial services to hemp-related legitimate businesses and hemp-related service providers to address-- 7#a7 compliance with obligations of financial institutions1 as of the date of enactment of this ,act1 under ,federal laws 7including regulations7 determined relevant by the ,federal banking regulator and the ,department of the ,treasury1 including subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 and its implementing regulation in conformity with this ,act and the regulations relating to domestic hemp production under part #iij of title #g1 ,code of ,federal ,regulations2 and 7#b7 best practices for financial institutions to follow when providing financial services1 including processing payments1 to hemp-related legitimate businesses and hemp-related service providers4 #i4 ,treatment of income derived from a ,state-sanctioned marijuana business for qualification for a covered mortgage loan 7a7 ,definition ,in this section1 the term covered mortgage loan means any loan secured by a first or subordinate lien on residential real property1 including individual units of condominiums and cooperatives1 designed principally for the occupancy of #a to #d families that is-- 7#a7 insured by the ,federal ,housing ,administration under title ,i or title ,,ii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjb et seq41 #agjg et seq472 7#b7 insured under section #bee of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaez-#bj72 7#c7 guaranteed under section #ahd or #ahd;,a of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#ac;a1 #agaez-#ac;b72 7#d7 guaranteed1 insured1 or made by the ,department of ,veterans ,affairs2 7#e7 guaranteed1 insured1 or made by the ,department of ,agriculture2 7#f7 purchased or securitized by the ,federal ,home ,loan ,mortgage ,corporation or the ,federal ,national ,mortgage ,association2 or 7#g7 acquired or purchased by a ,federal ,home ,loan ,bank or pledged as collateral for an advance from a ,federal ,home ,loan ,bank4 7b7 ,treatment of income 7#a7 ,in general ,income derived from a ,state-sanctioned marijuana business that operates within a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of marijuana pursuant to a law or regulation of the ,state1 ,indian ,tribe1 or political subdivision1 as applicable1 or a service provider 7wherever located71 shall be considered in the same manner as any other legal income for purposes of determining eligibility for a covered mortgage loan for a #a- to #d-unit property that is the principal residence of the mortgagor4 7#b7 ,liability ,the mortgagee or servicer of a covered mortgage loan described in paragraph 7#a71 or any ,federal agency1 the ,federal ,national ,mortgage ,association1 or the ,federal ,home ,loan ,mortgage ,corporation1 may not be held liable pursuant to any ,federal law or regulation solely for-- 7,a7 providing1 insuring1 guaranteeing1 purchasing1 or securitizing a mortgage to an otherwise qualified borrower on the basis of the income described in paragraph 7#a72 or 7,b7 accepting the income described in paragraph 7#a7 as payment on the covered mortgage loan4 7c7 ,implementation ,not later than #ahj days after the date of enactment of this ,act-- 7#a7 the ,federal ,housing ,administration shall implement subsection 7b7-- 7,a7 by notice or mortgagee letter for loans insured under title ,i1 title ,,ii1 or section #bee of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agjb et seq41 #agjg et seq41 #agaez-#bj72 and 7,b7 by lender letter for loans guaranteed under section #ahd or #ahd;,a of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#ac;a1 #agaez-#ac;b72 7#b7 the ,department of ,veterans ,affairs shall implement subsection 7b7 by circular or handbook for loans guaranteed1 insured1 or made by the ,department2 7#c7 the ,department of ,agriculture shall implement subsection 7b7 by bulletin for loans guaranteed or made by the ,department2 7#d7 the ,federal ,home ,loan ,mortgage ,corporation shall implement subsection 7b7 by updating its ,single-,family ,seller_/,servicer ,guide for loans purchased or securitized by the ,corporation2 and 7#e7 the ,federal ,national ,mortgage ,association shall implement subsection 7b7 by updating its ,single ,family ,selling ,guide for loans purchased or securitized by the ,association4 #aj4 ,requirements for deposit accounts 7a7 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 appropriate ,federal banking agencies have a duty to ensure that the depository institutions supervised by those agencies-- 7,a7 are operating in a safe and sound manner2 and 7,b7 have processes and procedures in place to identify fraudulent or illegal activity1 whether activity occurs at a depository institution or through vendors or customers with which a depository institution has a relationship2 7#b7 the duty described in paragraph 7#a7 rests on laws and regulations1 not on personal beliefs or political motivations2 7#c7 undue pressure and coercion designed to restrict access to financial services for lawful businesses have no place at any appropriate ,federal banking agency2 7#d7 depository institutions should provide banking services in the communities in which those institutions serve while carrying out customer identification1 risk-based customer diligence1 and suspicious activity monitoring and reporting obligations under subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code 7referred to in this section as the ,bank ,secrecy ,act71 with respect to the customers of those institutions2 7#e7 despite the fact that individual customers of depository institutions within broader customer categories present varying degrees of risk1 all depository institutions should take a risk-based approach in assessing individual customer relationships rather than decline to provide banking services to categories of customers without regard to the risks presented by an individual customer or the ability of the depository institution to manage the risk2 7#f7 depository institutions that properly manage customer relationships and risks are neither prohibited nor discouraged from providing services to customers that are operating in compliance with applicable ,federal and ,state law2 and 7#g7 each depository institution is responsible for determining whether providing services to any particular customer is consistent with the business plan1 risk profile1 and management capabilities of the depository institution4 7b7 ,conditions for termination 7#a7 ,in general ,an appropriate ,federal banking agency may not request or require a depository institution to terminate a specific deposit account or group of deposit accounts 7including1 but not limited to1 any deposit account of any customer that is a ,state-sanctioned marijuana business or service provider71 unless-- 7,a7 there is a valid reason for that request or requirement1 as described in paragraph 7#b72 and 7,b7 reputational risk is not the dispositive factor for that request or requirement4 7#b7 ,valid reasons 7,a7 ,in general ,to establish a valid reason for a request or requirement under paragraph 7#a71 the appropriate ,federal banking agency shall document that the agency-- 7i7 has reasonable cause to believe that the applicable depository institution or any institution-affiliated party has engaged1 is engaged1 or is about to engage in-- 7,i7 an unsafe or unsound practice in conducting business2 7,,ii7 a violation of an applicable law1 rule1 regulation1 order1 condition imposed in writing1 formal or informal enforcement action1 or written agency formal or informal guidance1 which shall include the priorities for anti-money laundering and countering the financing of terrorism policy established by the ,secretary of the ,treasury under section #ecah7;h77#d7 of title #ca1 ,united ,states ,code1 or otherwise operating in a manner that is inconsistent with requirements of the ,bank ,secrecy ,act2 or 7,,iii7 any activity1 conduct1 or condition that could lead to1 or has led to1 the issuance of a matter requiring attention1 a matter requiring immediate attention1 a matter requiring board attention1 a document of resolution1 or a supervisory recommendation2 or 7ii7 has another reason1 determined to be valid in the discretion of the agency1 for making that request or imposing that requirement4 7,b7 ,treatment of national security and illicit finance threats ,if an appropriate ,federal banking agency has reasonable cause to believe that a specific customer or group of customers is1 or is acting for or on behalf of1 an entity that-- 7i7 poses a threat to national security2 7ii7 is involved in terrorist or other illicit financing2 7iii7 is an agent of the ,government of ,iran1 ,north ,korea1 ,syria1 or any country listed on the ,state ,sponsors of ,terrorism list2 7iv7 is in1 or is subject to the jurisdiction of1 any country described in clause 7iii72 7v7 does business with any entity described in clause 7iii7 or 7iv71 unless the appropriate ,federal banking agency determines that the customer or group of customers has conducted due diligence to avoid doing business with any entity described in clause 7iii7 or 7iv72 or 7vi7 is engaged in-- 7,i7 any other illicit conduct directly or indirectly supporting a transnational criminal organization1 drug trafficking organization1 or money laundering organization2 or 7,,ii7 any other criminal activity1 such belief shall satisfy the conditions permitting action by the appropriate ,federal banking agency under paragraph 7#a74 7c7 ,notice requirement ,if an appropriate ,federal banking agency requests or requires a depository institution to terminate a specific deposit account or a group of deposit accounts under subsection 7b71 the agency shall-- 7#a7 provide such request or requirement to the institution in writing2 and 7#b7 accompany such request or requirement with the valid reason for the request or requirement1 as described in subsection 7b77#b74 7d7 ,customer notice 7#a7 ,notice required ,except as provided in paragraph 7#b71 or as otherwise prohibited from disclosure by law1 if an appropriate ,federal banking agency requests or requires a depository institution to terminate a deposit account under subsection 7b71 the depository institution shall notify in writing the specific customer or group of customers1 the deposit account of which is being terminated1 of the valid reason for that termination1 as determined under subsection 7b77#b74 7#b7 ,notice prohibited 7,a7 ,notice prohibited in cases of national security and law enforcement investigations 7i7 ,in general ,neither a depository institution nor an appropriate ,federal banking agency may provide the applicable customer or group of customers with the notice required under paragraph 7#a7 if-- 7,i7 a ,federal law enforcement agency or an element of the intelligence community advises the depository institution or the appropriate ,federal banking agency that the notice-- 7aa7 may interfere with a matter of national security2 7bb7 involves a matter described in subsection 7b77#b77;,b72 or 7cc7 may interfere with a law enforcement investigation1 criminal prosecution1 or civil action brought by a government agency2 or 7,,ii7 the depository institution or appropriate ,federal banking agency knows or should know that1 with respect to that customer or group of customers1 a criminal prosecution or a law enforcement investigation is pending4 7ii7 ,consultation and recommendations ,an appropriate ,federal banking agency and depository institution shall consult with1 and follow the recommendations of1 a ,federal law enforcement agency or element of the intelligence community1 as applicable1 regarding whether the notice described in paragraph 7#a7 is required under that paragraph or prohibited under clause 7i7 of this subparagraph4 7,b7 ,notice prohibited in other cases ,if an appropriate ,federal banking agency requests or requires a depository institution to terminate a specific deposit account or a group of deposit accounts under subsection 7b71 neither the depository institution nor the appropriate ,federal banking agency may notify the customer or group of customers of the justification for that action1 if-- 7i7 that notice may-- 7,i7 disclose the existence of a report on suspicious transactions filed under section #ecah7;g7 of title #ca1 ,united ,states ,code2 or 7,,ii7 reveal confidential supervisory information or a concern of an appropriate ,federal banking agency relating to an internal control of a depository institution2 or 7ii7 the appropriate ,federal banking agency has reasonable cause to believe that the depository institution or any institution-affiliated party has engaged1 is engaged1 or is about to engage in-- 7,i7 a violation of an applicable law1 rule1 regulation1 order1 enforcement action1 condition imposed in writing1 or formal or informal written agency guidance2 or 7,,ii7 an unsafe or unsound banking practice relating to that customer or group of customers4 7e7 ,reporting requirement ,each appropriate ,federal banking agency shall-- 7#a7 submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives an annual report stating-- 7,a7 the aggregate number of specific deposit accounts that the agency requested that a depository institution terminate1 or required a depository institution to terminate1 during the previous year2 and 7,b7 the legal authority on which the agency relied in making each request and requirement under subparagraph 7,a7 and the frequency on which the agency relied on each such authority2 and 7#b7 before submitting each report required under paragraph 7#a71 provide the ,inspector ,general of the agency with an opportunity to conduct an evaluation or review of the activity described in that report1 which the ,inspector ,general shall submit to the committees described in paragraph 7#a7 concurrently with the submission of the report under paragraph 7#a74 7f7 ,increasing access to deposit accounts for businesses and consumers 7#a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the appropriate ,federal banking agencies1 in consultation with applicable ,state bank supervisors1 the ,secretary of ,commerce1 and the ,secretary of the ,treasury1 shall collectively promulgate rules or guidance to increase access to deposit accounts for businesses and consumers4 7#b7 ,standards ,the rules or guidance promulgated under paragraph 7#a7 shall include standards for-- 7,a7 entering into and maintaining individual consumer relationships and relationships with categories of consumers2 7,b7 increasing access to deposit accounts-- 7i7 in the communities in which depository institutions serve1 including rural communities and low- and moderate-income communities1 which may be tailored to account for the business models of community banks and credit unions2 and 7ii7 for ,tribal communities1 including by overcoming historical barriers to authenticating the identities of individuals and other challenges to obtaining deposit accounts2 7,c7 depository institutions to use innovative technologies to increase access to deposit accounts while maintaining appropriate third-party risk management and oversight2 and 7,d7 features of a deposit account that are responsive to the needs of an unbanked business or consumer4 7g7 ,biennial ,,fdic survey and report on access to deposit accounts by small and medium-sized businesses 7#a7 ,in general ,the ,federal ,deposit ,insurance ,corporation shall conduct a biennial survey on the efforts of depository institutions to provide greater access to deposit accounts to small and medium-sized businesses that may have encountered difficulties in accessing or maintaining deposit accounts4 7#b7 ,considerations ,in conducting each survey required under paragraph 7#a71 the ,federal ,deposit ,insurance ,corporation shall consider what issues and barriers most frequently prevent small and medium-sized businesses from accessing or maintaining deposit accounts that are necessary to operate those businesses4 7h7 ,rule of construction ,nothing in this section may be construed to limit or restrict the authority of an appropriate ,federal banking agency to-- 7#a7 identify or discuss potential supervisory findings with the staff or management of a depository institution1 including findings involving financial condition1 governance1 consumer protection1 internal controls1 or unsafe or unsound conditions2 or 7#b7 identify or discuss deficiencies in compliance or risks associated with the ,bank ,secrecy ,act1 including anti-money laundering or countering the financing of terrorism practices4 7i7 ,definitions ,in this section3 7#a7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency means-- 7,a7 the appropriate ,federal banking agency1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 the ,national ,credit ,union ,administration1 in the case of an insured credit union4 7#b7 ,depository institution ,the term depository institution means-- 7,a7 a depository institution1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 an insured credit union4 7#c7 ,intelligence community ,the term intelligence community has the meaning given the term in section #c of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cjjc74 #aa4 ,annual access to financial services report ,the ,federal banking regulators shall submit to ,congress an annual report containing-- 7#a7 information and data on the availability of access to financial services for minority-owned1 veteran-owned1 women-owned1 ,tribal community-owned1 and small ,state-sanctioned marijuana businesses2 and 7#b7 any regulatory or legislative recommendations for expanding access to financial services for minority-owned1 veteran-owned1 women-owned1 ,tribal community-owned1 and small ,state-sanctioned marijuana businesses and hemp-related legitimate businesses4 #ab4 ,,gao study on barriers to marketplace entry 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study on the barriers to marketplace entry1 including in the licensing process1 and the access to financial services for potential and existing minority-owned1 veteran-owned1 women-owned1 and small ,state-sanctioned marijuana businesses and hemp-related legitimate businesses4 7b7 ,report ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report containing-- 7#a7 all findings and determinations made in conducting the study required under subsection 7a72 and 7#b7 any regulatory or legislative recommendations for removing barriers to marketplace entry and success1 including in the licensing process1 and expanding access to financial services for potential and existing minority-owned1 veteran-owned1 women-owned1 and small ,state-sanctioned marijuana businesses and hemp-related legitimate businesses4 #ac4 ,,gao study on effectiveness of certain reports on finding certain persons 7a7 ,in general ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states1 in consultation with the ,attorney ,general1 shall conduct a study on-- 7#a7 the effectiveness of reports on suspicious transactions filed pursuant to section #ecah7;g7 of title #ca1 ,united ,states ,code1 at finding individuals or organizations suspected or known to be engaged with transnational criminal organizations2 and 7#b7 whether any engagement described in paragraph 7#a7 exists in a ,state1 an ,indian ,tribe1 or a political subdivision of a ,state that allows the cultivation1 production1 manufacture1 sale1 transportation1 display1 dispensing1 distribution1 or purchase of marijuana4 7b7 ,requirements ,the study required under subsection 7a7 shall examine reports on suspicious transactions-- 7#a7 relating to marijuana-related businesses1 as described in the guidance entitled ,,bsa ,expectations ,regarding ,marijuana-,related ,businesses1 published by the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury on ,february #ad1 #bjad1 during the period beginning on ,january #a1 #bjad1 and ending on the date of enactment of this ,act2 and 7#b7 relating to ,state-sanctioned marijuana businesses during the period beginning on ,january #a1 #bjad1 and ending on the date that is #a year after the date of enactment of this ,act4 #ad4 ,applicability to hemp-related legitimate businesses and hemp-related service providers ,the provisions of this ,act 7other than sections #f and #ac7 shall apply with respect to hemp-related legitimate businesses and hemp-related service providers in the same manner as such provisions apply with respect to ,state-sanctioned marijuana businesses and service providers4 #ae4 ,rules of construction 7a7 ,no requirement ,to provide financial services ,nothing in this ,act shall require a depository institution1 an entity performing a financial service for or in association with a depository institution1 a community development financial institution1 or an insurer to provide financial services to a ,state-sanctioned marijuana business1 service provider1 or any other business4 7b7 ,general examination1 supervisory1 and enforcement authority ,nothing in this ,act may be construed in any way to limit or otherwise restrict the general examination1 supervisory1 and enforcement authority of the ,federal banking regulators 7including the ,department of the ,treasury71 provided that any supervisory or enforcement action is not being taken solely because the provision of financial services to a ,state-sanctioned marijuana business or service provider4 7c7 ,business of insurance ,nothing in this ,act shall interfere with the regulation of the business of insurance in accordance with the ,act entitled ,an ,act to express the intent of the ,congress with reference to the regulation of the business of insurance1 approved ,march #i1 #aide 7commonly known as the ,mc,carran-,ferguson ,act2 #ae ,u4,s4,c4 #ajaa et seq471 and the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq474 7d7 ,law enforcement authority ,nothing in this ,act shall restrict or limit the ability of ,federal law enforcement agencies to investigate and prosecute money-laundering crimes involving proceeds of illegal activity other than marijuana-related activities conducted in compliance with the law of the ,state1 ,indian ,tribe1 or political subdivision of a ,state by a ,state-sanctioned marijuana business or service provider4