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NAFCU talks marijuana banking landscape with state AGs, regulators
NAFCU Regulatory Affairs Counsel Kaley Schafer yesterday provided insights into regulatory challenges facing financial institutions that serve marijuana-related businesses (MRBs). Schafer was part of a panel at a Regulator Roundtable, hosted by the Maryland Medical Cannabis Commission, which also featured representatives from state credit union and bank supervisory groups.
As several states have legalized marijuana, NAFCU has encouraged Congress to consider legislative complexities, noting the benefits of a strong safe harbor for financial institutions that wish to serve MRBs. Congress continues to consider ways to allow financial institutions to serve these businesses in states that have legalized the drug; the House in September passed legislation to provide a safe harbor for credit unions and other lenders that serve MRBs.
NAFCU recently released an updated version of its Marijuana Banking Issue Brief that provides comprehensive, up-to-date information on federal legislative efforts and state-level marijuana laws. The new brief also provides information on the political and regulatory landscape surrounding marijuana banking to help credit unions better understand the current state of play in this area.
Another related issue in this landscape is banking hemp-related businesses. Hemp-derived products became legal at the federal level under the 2018 Farm Bill, and the NCUA was the first financial services regulator to issue interim guidance allowing federally insured credit unions to provide certain financial services to legally-operating hemp businesses. Other banking regulators released similar guidance this week after the U.S. Department of Agriculture (USDA) issued an interim final rule in October that outlines provisions for legal hemp production.
Additional guidance for banking hemp-related businesses could be released; NCUA Chairman Rodney Hood indicated yesterday during a House Financial Services Committee hearing that the agency will continue to engage the USDA and other stakeholders on the issue.
While NAFCU has not and will not take a position on the legalization or decriminalization of marijuana, the association has a number of resources – in addition to the brief – including a pros and cons document and Compliance Blog, and has explored the issue in its monthly Compliance Monitor newsletter and bimonthly magazine.