Newsroom
July 13, 2015
Senate bill gives legal marijuana businesses access to financial services
Six senators last week introduced the Marijuana Businesses Access to Banking Act of 2015, S. 1726, which would ensure that legal marijuana businesses have access to financial institution accounts and be able to accept credit cards and write checks.
Introduced last week by Sens. Jeff Merkley, D-Ore.,Cory Gardner, R-Colo.,Michael Bennet, D-Colo.,Rand Paul, R-Ky.,Ron Wyden, D-Ore., and Patty Murray, D-Wash., S. 1726 would prevent federal regulators from prohibiting or penalizing a depository institution for providing financial services to a "legitimate state-sanctioned and regulated marijuana business."
According to the bill's authors, marijuana businesses operating under state laws that have legalized medicinal or recreational marijuana have been mostly denied access to the banking system because institutions that provide them services can be prosecuted under federal law.
"Without the ability to access bank accounts, accept credit cards or write checks, businesses must operate using large amounts of cash. This creates safety risks for businesses and surrounding communities, and makes it more difficult for local and state governments to collect taxes," the senators said.
Last year, the Financial Crimes Enforcement Network issued guidance for financial institutions serving marijuana businesses but also said it's a complicated issue best addressed by legislation.
While FinCEN's guidance was meant to mitigate the dangers associated with conducting an all-cash business, NAFCU noted at the time that it did not address the legal issue of whether an institution is violating federal law in providing services to a marijuana business.
Introduced last week by Sens. Jeff Merkley, D-Ore.,Cory Gardner, R-Colo.,Michael Bennet, D-Colo.,Rand Paul, R-Ky.,Ron Wyden, D-Ore., and Patty Murray, D-Wash., S. 1726 would prevent federal regulators from prohibiting or penalizing a depository institution for providing financial services to a "legitimate state-sanctioned and regulated marijuana business."
According to the bill's authors, marijuana businesses operating under state laws that have legalized medicinal or recreational marijuana have been mostly denied access to the banking system because institutions that provide them services can be prosecuted under federal law.
"Without the ability to access bank accounts, accept credit cards or write checks, businesses must operate using large amounts of cash. This creates safety risks for businesses and surrounding communities, and makes it more difficult for local and state governments to collect taxes," the senators said.
Last year, the Financial Crimes Enforcement Network issued guidance for financial institutions serving marijuana businesses but also said it's a complicated issue best addressed by legislation.
While FinCEN's guidance was meant to mitigate the dangers associated with conducting an all-cash business, NAFCU noted at the time that it did not address the legal issue of whether an institution is violating federal law in providing services to a marijuana business.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.