A record number of banks are now reporting that they’re working with state-legal marijuana businesses amid increased pressure on Congress to enact broader protections for financial institutions interested in servicing the cannabis industry and as the Biden administration’s rescheduling proposal advances, new federal data shows.
The Financial Crimes Enforcement Network (FinCEN) has been tracking cannabis banking trends for the past decade, and its latest report for the second quarter of 2024 shows a record high, with 831 banks and credit unions reporting their active involvement with marijuana companies.
That’s up from 815 in the first quarter of 2024 and 799 in the prior quarter.
FinCEN compiles this data based on financial institutions filing requisite “Suspicious Activity Reports,” or SARs, for marijuana-related business (MRB) clients.
There are several possible factors that could help explain the increase in banks working with cannabis businesses, including the expansion of state marijuana markets as more legalization laws have taken effect over time. It’s also possible financial institutions are more willing to navigate the space as congressional lawmakers across the aisle continue to discuss their shared interest in advancing codified protections for banks under the Secure and Fair Enforcement Regulation (SAFER) Banking Act.
That legislation cleared
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