Although the legal marijuana industry has flourished over the last few years, there is one particular area that has proven challenging. With marijuana still classed as a Schedule I drug under the Controlled Substances Act, it is still a federal offense to take on any type of transaction with the substance. This is also the case in states where cannabis has been legalized for recreational use. This federal level statute has made it difficult for the financial sector to support or facilitate this industry, as they would be deemed to be abetting criminal activity.

Without access to some of the most basic banking services like deposits, withdraws and credit card transactions, marijuana businesses are forced to operate on a cash basis. That makes them particularly vulnerable to crimes like robbery. To help remedy this situation, a group consisting of lawmakers, financial sector representatives, and marijuana businesses have come together to push for the Secure and Fair Enforcement (SAFE) Banking Act.

This bill has been designed to permit financial institutions to cater to cannabis businesses without the fear of federal reprisals, in those states where cannabis has been legalized. The SAFE Banking Act is expected to help these businesses gain access to the same financial services as any other industry. These businesses are expected to operate safer with the reduced risk of being targeted by individuals with ill intentions. They will have access to insurance facilities and access to business loans to expand their operations. It also protects the banks from being prosecuted under money laundering laws that would arise out of dealing with cannabis-related businesses.