Cannabis industry faces tax, banking hurdles
The report says banks cite legal risk and compliance burdens, while 1,000 institutions filed suspicious activity reports on cannabis transactions in 2024.
- On Tuesday, a Government Accountability Office report found many banks reluctant to serve cannabis-related businesses due to perceived regulatory risks, though the agency found "no indication" any institution faced penalties.
- Banks cite the "operational workload and compliance burden" of serving CRBs, including requirements to file suspicious activity reports under the Bank Secrecy Act, as primary barriers to entry.
- Account closures, high fees, and limited payment options complicate operations for CRBs, with some paying over $100,000 annually in account fees; Visa, Mastercard, American Express, and Discover prohibit cannabis purchases.
- Industry employees report difficulties obtaining personal financial services like mortgages, car loans, and life insurance, as some institutions explicitly deny services to cannabis business owners.
- Bipartisan Representatives and Senators refiled legislation to provide safe harbor protections for banks serving the industry, though about 1,000 financial institutions currently report working with CRBs nationwide.
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Cannabis industry faces tax, banking hurdles
(The Center Square) – Most financial institutions are wary of working alongside cannabis-related businesses despite widening acceptance, according to a new report.
Many Banks Still Won't Work With Marijuana Businesses, Federal Report Shows
Many banks are still reluctant to provide services to state-licensed marijuana businesses, according to a new federal report. The Government Accountability Office (GAO) conducted a series of focus groups and interviews with cannabis industry operators, financial services providers, advocacy groups and federal agencies to study the issue. The agency’s report, published on Tuesday, concludes that […]
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The Marijuana HeraldFederal Report Finds Marijuana Businesses Still Face Major Banking Barriers as Most Financial Institutions Stay Away
The Marijuana Herald - Marijuana news and information Marijuana businesses continue to face significant barriers to basic banking, loans and payment processing despite a gradual increase in the number of financial institutions willing to work with the industry, according to a newly released report from the U.S. Government Accountability Office. The 44-page report, dated August 7 and publicly released September 8, found that about 1,000 banks and…
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