More Banks Say They’re Working With Marijuana Businesses, Federal Report Shows As Lawmakers Advance Reform

MJ moment

The number of banks and credit unions reporting that they work with marijuana businesses ticked up last quarter, according to new federal data. As of June 30, there were 706 financial institutions that had filed requisite reports saying they were actively serving cannabis clients. Thats up from 689 in the previous quarter but still down from a peak of 747 in late 2019. Via FinCEN. The new figures released by the Financial Crimes Enforcement Network (FinCEN) come amid a congressional push to protect banks and credit unions that work with the cannabis industry from being penalized by federal regulators. While there’s 2014 FinCEN guidance in place meant to help financial institutions navigate the space, lawmakers want to enact clear, statutory protections. And that would be accomplished through House-passed standalone legislation, or an amendment that was attached to a defense spending bill this week. Until then, there’s still reluctance within the banking sector when it comes to servicing businesses that work with a Schedule I controlled substance, and that’s reflected in the relatively low number of depository institutions that actually follow the guidance and take on cannabis clients. Last year saw a significant and consistent drop in the number of banks and credit unions that reported having marijuana accounts, but those figures began to stabilize this year. “Short-term declines in the number of depository institutions actively providing banking services to marijuana-related businesses (MRBs) may be explained by filers exceeding the 90 day follow-on Suspicious Activity Report (SAR) filing timeframe,” FinCEN, which is part of the Treasury Department, said. “Several filers take 180 days or more to file a continuing activity report. After 90 days, a depository institution is no longer counted as providing banking services until a new guidance-related SAR is received.” Past reports from the agency had noted that it…

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Source : More Banks Say They’re Working With Marijuana Businesses, Federal Report Shows As Lawmakers Advance Reform

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