Banks still hesitate to provide services to cannabis businesses due to legal issues and costs, according to a report issued Tuesday by the congressional watchdog.
And, according to the Government Accountability Office (GAO), although more banks have started serving the marijuana-related products retailers, some businesses still face challenges obtaining financial services from banks, including accounts and loans.
In its report, the GAO said there were several factors that have dissuaded banks from serving cannabis-related businesses (CRBs). Those include potential legal and regulatory sanctions and the costs of complying with anti-money laundering/Bank Secrecy Act (AML/BSA) requirements.
Yet, other banks have decided to serve CRBs to meet community needs or a business opportunity, the GAO said. But the amount of CRBs being served seems to have leveled off over the past five years or so.
“According to FinCEN (Financial Crimes Enforcement Network, an arm of the U.S. Treasury) data, the number of financial institutions that reported providing services to CRBs increased from 2015 to 2019 and then remained relatively steady through 2024,” the GAO report states. “FinCEN data indicate that about 1,000 banks and credit unions filed such reports in 2024.” FinCEN found those numbers from banks and credit unions that filed suspicious activity reports (SARs) from 2015-24. However, the data do not
These data do not identify how many institutions accept CRBs as ongoing customers as the banks and credit unions may not report or may not know they are providing services to CRBs, or they may report providing services to a CRB in an occasional transaction but not accept CRBs as ongoing customers or members, the report indicates.
The report found that examples of CRBs having difficulty in obtaining or keeping banking services include bank account closures, high fees for bank accounts, and high interest rates for business loans. Further, the report stated, accepting customer payments is difficult because two major credit card companies prohibit cannabis purchases. CRB owners and managers also told GAO that they and their employees face challenges accessing personal financial services due to their work in the cannabis industry.
GAO offered no recommendations in its report.
Banking Services: Cannabis Businesses Face Access Challenges
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