U.S. Senate Banking Committee Democrats voted this week against an amendment proposed by U.S. Senator and member of the Senate Banking Committee Bill Hagerty (R-TN) to the Secure And Fair Enforcement Regulation (SAFER) Banking Act to prevent drug cartels from laundering fentanyl and meth in the United States.
The SAFER Banking Act, introduced by U.S. Senators Steve Daines (R-MT) and Jeff Merkley (D-OR), attempts to allow banks and credit unions to serve cannabis businesses and their workers in states where cannabis is legal.
Hagerty proposed an amendment to the legislation to resolve a loophole allowing fentanyl and meth earnings to be laundered through marijuana sales.
According to Hagerty, the bill, among other things, shields marijuana proceeds from the money laundering provisions and allows depository institutions to transact marijuana proceeds.
“The proposed amendment creates civil penalties for anyone in the marijuana supply chain who co-mingles fentanyl or methamphetamine proceeds with state-sanctioned marijuana proceeds,” Hagerty said.
Hagerty noted that drug cartels use marijuana sales as a cover for smuggling dangerous drugs into the United States, where they are used to kill more than 100,000 Americans annually.
However, despite claiming the drug trafficking crisis is a priority, all of the Senate Banking Democrats voted against the motion to allow lawmakers to consider Hagerty’s amendment.
According to Hagerty, Senator Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, wanted to allow the committee to decide the fate of the amendment rather than letting it go to the Senate floor for consideration.
“I’d like to make clear what’s happening today: Chairman Brown is attempting to prevent a vote from occurring and for this Committee to decide the fate of the amendment, rather than allowing a vote to happen to try to defeat it on its merit,” Hagerty said.
The SAFER Banking Act passed out of committee by a vote of 14-9 on Wednesday without Hagerty’s amendment. The legislation now proceeds to the full Senate and then the House for more debate.
According to Hagerty, this is very concerning, and it shocks him that the committee allowed the legislation to contain this loophole.
“This is a very real concern. These cartels are moving fentanyl and methamphetamine right alongside marijuana sales, and there’s a loophole in this law. I’m shocked that this Committee is willing to let this go through. This is supporting fentanyl and methamphetamine sales. This is an easy fix. I’m shocked at the result here,” Hagerty said.
The Tennessee Star contacted Hagerty for comment but did not receive a reply before press time.
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Hannah Poling is a lead reporter at The Ohio Star, The Star News Network, The Arizona Sun Times, and The Tennessee Star. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
