Where is the money today?
Currently 33 states, territories, and the District of Columbia have legalized cannabis in one form or another. Due to discrepancies between state and federal law, legal cannabis businesses are forced to operate almost entirely in cash, with very little access to financial services. This leaves thousands of dollars in backroom safes transported in shoe boxes and backpacks, creating a prime target for crime. By closing this legal loophole and allowing credit unions to apply rigorous screening and compliance protocols to these legal businesses, Congress will help hundreds of communities get cash off the streets, provide thorough anti-money laundering review, and support small businesses from coast to coast.
What’s at stake?
Unlike other legal business operators, cannabis-related businesses do not have equal access to financial services. Credit unions that provide cannabis banking use rigorous screening and compliance protocols to appropriately monitor and maintain high-risk accounts, but they still face significant legal risks. They need Congress to provide a safe harbor.
The legal uncertainty between state and federal law must be resolved to bring cannabis-related businesses into mainstream financial services. Cannabis banking legislation would
protect financial institutions and the communities they serve.