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December 14, 2016
Senators press FinCEN for updated marijuana guidance
A bipartisan group of 10 senators on Wednesday pressed the Financial Crimes Enforcement Network to update its guidance to financial institutions, including credit unions, on their ability to provide services to the state-sanctioned marijuana industry, noting that now 29 states have legalized the substance in some form.
"Most banks and credit unions have either closed accounts or simply refused to offer services to indirect and ancillary businesses that service the marijuana industry," stated the letter, sent by Sens. Jeff Merkley, D-Ore., Ron Wyden, D-Ore., Kirsten Gillibrand, D-N.Y., Patty Murray, D-Wash., Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., Al Franken, D-Minn., Angus King, I-Maine, Lisa Murkowski, R-Alaska, and Cory Booker, D-N.J.
The senators note that the 2014 FinCEN guidance did not distinguish between state-sanctioned marijuana businesses and the indirect businesses that service the marijuana industry, so financial institutions have had to determine how to classify and treat indirect businesses.
"Limitations on access to financial services have become increasingly problematic for legal businesses and will only present a larger problem as more states legalize marijuana, either for recreational or medical uses," the letter stated. "Indeed, since FinCEN's 2014 guidance was released, less than 3% of the nation's 11,954 federally regulated banks and credit unions have chosen to serve the cannabis industry."
The senators urged FinCEN to update its guidance "without delay."
"Most banks and credit unions have either closed accounts or simply refused to offer services to indirect and ancillary businesses that service the marijuana industry," stated the letter, sent by Sens. Jeff Merkley, D-Ore., Ron Wyden, D-Ore., Kirsten Gillibrand, D-N.Y., Patty Murray, D-Wash., Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., Al Franken, D-Minn., Angus King, I-Maine, Lisa Murkowski, R-Alaska, and Cory Booker, D-N.J.
The senators note that the 2014 FinCEN guidance did not distinguish between state-sanctioned marijuana businesses and the indirect businesses that service the marijuana industry, so financial institutions have had to determine how to classify and treat indirect businesses.
"Limitations on access to financial services have become increasingly problematic for legal businesses and will only present a larger problem as more states legalize marijuana, either for recreational or medical uses," the letter stated. "Indeed, since FinCEN's 2014 guidance was released, less than 3% of the nation's 11,954 federally regulated banks and credit unions have chosen to serve the cannabis industry."
The senators urged FinCEN to update its guidance "without delay."
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