NAFCU, CUNA Support Pot & Remote Notarization Amendments to House Bill
Adding the SAFE Banking and SECURE Notarization Acts would provide CUs protection and guidance, the trade groups say.
Credit union trade organizations NAFCU and CUNA have asked U.S. House of Representatives leadership to add two important amendments to the FY23 National Defense Authorization Act (NDAA) scheduled for a floor vote this week. Those amendments involve cannabis banking legislation and remote online notarization.
NAFCU and CUNA, along with the Independent Community Bankers of America (ICBA) and the American Bankers Association (ABA), jointly sent a letter to Reps. Nancy Pelosi (D-Calif.) and Kevin McCarthy (R-Calif.) on Wednesday to show their support of adding the SAFE Banking Act and the SECURE Notarization Act to the NDAA ahead of the full vote.
While the groups noted they do not take a position on legalizing or decriminalizing recreational or medical marijuana at the federal or state levels, “financial institutions operating in states where it is legal have business and individuals involved in the cannabis market who need access to traditional depository and lending services, the absence of which creates a significant public safety issue,” the letter stated.
“Additionally, even those financial institutions that choose not to bank the cannabis industry risk unknowingly serving cannabis businesses in states where cannabis is legal. Indirect connections are often difficult to identify and avoid because, like any other industry, those offering cannabis-related services work with vendors and suppliers. Under current law, a financial institution that does business with any one of these indirectly affiliated entities could unknowingly violate federal law,” the letter continued.
The four groups jointly argued that the SAFE Banking Act would provide protections to those financial organizations that serve legal cannabis businesses.
The groups stated, “Legal cannabis businesses would no longer be forced to deal exclusively in cash, which makes them vulnerable to violent robbery and puts customers, employees and the public at risk. The SAFE Banking Act will help keep our communities safe.”
In addition, the financial trade groups wrote the addition of the SECURE Notarization Act to the NDAA would be in the public interest for Congress to pass a national standard for remote online notarization (RON), especially since consumer and business behaviors have changed since the onset of the pandemic.
“Nationwide use of RON will create expanded access to notarization, particularly for underserved communities, as well as afford consumers time and flexibility to review documents and proceed when they are ready to sign,” the letter stated.
“Changes in business practices and consumer behaviors as a result of COVID-19 have created technological solutions and innovations that should be reflected in public policy. Congress should pass amendment #543 to allow financial institutions to adopt these changes which consumers have become accustomed to and found workable in their daily lives,” the groups wrote.