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 remain reluctant to serve cannabis-related businesses due to perceived regulatory risks, though the agency found "no indication" any bank has ever been penalized solely for working with the industry.
- Banks cite the "operational workload and compliance burden" of serving CRBs, including requirements to file suspicious activity reports under the Bank Secrecy Act, as reasons institutional wariness persists despite widening state legalization.
- 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.
- Beyond business constraints, 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 in June to provide safe harbor protections for banks serving CRBs, though some institutions indicate broader federal reforms like legalization may be necessary for policy change.
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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 […]
Federal 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 … Continue reading
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