The Ministry of Justice issued a memo to congressional leaders on the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act), expressing concerns about the bill. Initially, according to the department, the language in the original House bill could “significantly complicate law enforcement investigations and prosecutions.” reported Punchbowl News.

The outlet also noted that the memo was actually requested by Senate Republicans.

The marijuana banking legislation aims to allow regulated financial institutions to safely work with marijuana businesses with legal cannabis programs. For the Senate Majority Leader Chuck Schumer, This cannabis banking reform remains among the highest priorities in the government’s lame duck session. Lots of industry experts and analysts believe that the bill has a chance at this point.

DOJ concerns

Among the major concerns highlighted in the DOJ note add the following:

• The lack of precise language when describing “legitimate” cannabis businesses that “might create immunity protections around cannabis business activities involving other illegal drugs or activities.” He added that “therefore, the bill could be construed to immunize, for example, a state-legal marijuana business that is also engaged in fraud, or one whose marijuana business includes both state-legal and state-prohibited conduct.”
• The proposal fails to address some key issues about the impact of anti-money laundering laws.
• The DOJ also found that the SAFE Banking Act does not emphasize the responsibility of financial institutions to certify a marijuana company’s compliance with state laws under common anti-money laundering laws. The bill says “nothing about how states determine compliance with state laws or what happens when state laws conflict,” specifically as it relates to marijuana transportation.

optimism present

According to the email obtained by Punchbowl News, a DOJ official said that with some minimal…