Federal officials have released updated data on the number of banks reporting that they work with marijuana businesses–and most financial institutions don’t seem especially concerned with their cannabis clientele.
The Financial Crimes Enforcement Network (FinCEN), which falls under the U.S. Department of Treasury, has been publishing data for years about suspicious activity reports (SARs) related to marijuana-related businesses. This latest batch shows relative stability in the willingness of banks to service cannabis clients even under federal prohibition.
But notably, the portion of SARs identified as “marijuana limited” stands at 80 percent. That term refers to cannabis businesses that appear to be operating in compliance with state law and meet the agency’s standard for being serviceable under existing federal guidelines, as opposed to “marijuana priority” or “marijuana termination,” which indicate potential violations or account closures.
While there have been numerous calls for FinCEN to update its decade-old guidance on cannabis banking policy amid the ever-growing state legalization movement, that hasn’t happened. But even so, financial institutions have been increasingly willing to work with the industry over recent years.
As of the fourth quarter of Fiscal Year 2024, FinCEN reported that there were 816 banks and credit unions serving cannabis businesses. That
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