Senators advocate for SAFE Banking Act inclusion in the America COMPETES Act
A group of Senators, led by Sens. Jeff Merkley, D-Ore., and Jacky Rosen, D-Nev., joined together Thursday in a letter to congressional leaders calling for the inclusion of the NAFCU-backed Secure and Fair Enforcement (SAFE) Banking Act in the America COMPETES Act of 2022.
In the letter, the bipartisan group of Senators noted that cannabis banking legislation has already passed the House six times at this point, including as a standalone bill that garnered “the support of more than three quarters of the chamber and a majority of the members of each party.”
“The cannabis industry has become a powerful job creator and a significant generator of tax revenue,” wrote the Senators. “However, financial institutions are often reluctant to transact with cannabis-related businesses, even in states that have some form of legalized cannabis, due to legal and regulatory risks arising from inconsistent federal and state laws.
“The SAFE Banking Act, as included in the House-passed America COMPETES Act, would allow banks, credit unions, and other financial institutions to offer banking services to legally-operating cannabis businesses without fear of punishment by federal regulators,” continued the group.
NAFCU has long offered support for the SAFE Banking Act, which would allow Congress to provide greater clarity and legal certainty at the federal level for credit unions that choose to provide financial services to state-authorized marijuana-related businesses (MRBs) and ancillary businesses that may serve those businesses in states where such activity is legal. In addition, the association in 2021 updated its Marijuana Banking Issue Brief, where an update on the SAFE Banking Act is included.
The association will continue to keep credit unions updated of legislative and regulatory changes that could impact their operating environment.
Spring 2022 Supervisory Highlights Part II: Mortgage Origination, Prepaid Accounts, Remittances, and Student Loan Servicing
Examination & Enforcement
Fraud, Current Affairs, Credit Unions, Compliance, Risk Management
Add to Calendar 2022-05-16 09:00:00 2022-05-16 09:00:00 Managing Fraud at Credit Unions in an Increasingly Digital World To remain competitive, credit unions are increasingly adopting digital offerings. However, digital growth can lead to increased application fraud. Legacy systems primarily intended to ensure compliance with Know Your Customer (KYC) and Customer Identification Programs are no longer effective. With so much personally identifiable information available, both real and synthetic, newer and more dynamic technologies are required to stop fraud. What’s at stake: The ability to keep up with banks and fintechs increasingly able to provide a seamless digital onboarding experience and access to new products and money right away. Getting it wrong not only means higher losses, but reduced growth in the long term. In the face of this increasingly digital world, it’s not realistic to manually review everything. Newer types of fraud such as synthetic identities often go undetected and can account for up to 10% of chargeoffs. Evaluating the identities of potential new members at onboarding has to be done in an automated fashion using technology that includes phone and email intelligence, as well as other signals to flag high risk applications so they can be more fully vetted. Understanding how to incorporate new technology at account opening and knowing what verification strategies to pursue when you suspect fraud can help credit unions ensure predictable growth with minimal losses. Get the Report: Location NAFCU email@example.com America/New_York public
Get daily updates.
Subscribe to NAFCU today.