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Senators discuss marijuana banking concerns
The Senate Banking Committee Tuesday discussed a number of concerns related to providing financial services to marijuana-related businesses (MRBs), including the lack of guidance and risk of criminal activity. Ahead of the hearing, NAFCU reiterated the need for greater clarity and legal certainty at the federal level for credit unions that serve MRBs.
Tuesday's hearing was the committee's first hearing on the issue, though the House Financial Services Committee has held previous hearings and advanced legislation designed to provide a safe harbor for credit unions and other lenders that serve MRBs in states that have legalized the drug.
Senate Banking Committee Chairman Mike Crapo, R-Idaho, expressed interest in learning more about the House bill's safe harbor provision, as well as challenges related to Bank Secrecy Act (BSA)/anti-money laundering (AML) compliance. Committee Ranking Member Sherrod Brown, D-Ohio, also noted the risk MRBs face when they can't get access to financial services and have to work primarily in cash.
The committee heard from two senators whose states have legalized marijuana and representatives from the financial services industry, who shared NAFCU's concerns about the lack of guidance.
While NAFCU has not taken a position on the legalization or decriminalization of marijuana, it has encouraged Congress to consider legislative complexities and previously noted the benefits of a strong safe harbor for financial institutions that wish to serve MRBs.
Currently, serving MRBs pose significant compliance risks for credit unions. NAFCU has available a new issue brief on marijuana banking, which outlines the current status of three bills that have been introduced in Congress and more. The association also has a pros and cons document to help credit unions understand these risks in greater detail.
In addition to the pros and cons resource, NAFCU has additional information available on its Compliance Blog and has explored the issue in its monthly Compliance Monitor newsletter and bimonthly magazine.