Federal Agency Reports Stable Trend in Banks Working with Marijuana Businesses Amid Trump’s Rescheduling Consideration
The Financial Crimes Enforcement Network (FinCEN) has released updated data on the number of banks reporting their involvement with marijuana businesses, showing a stable trend in financial institutions’ willingness to work with the industry despite federal prohibition. According to the latest data, 80% of suspicious activity reports (SARs) related to marijuana businesses are categorized as “marijuana limited,” indicating compliance with state laws and federal guidelines.
The data, which dates back to 2014, shows that the number of banks and credit unions serving cannabis businesses has remained relatively stable, with 816 institutions reported as of the fourth quarter of Fiscal Year 2024. This is a slight decrease from the peak of 831 institutions in the second quarter of the same fiscal year, but a significant increase from the early years of legalization.
The data also reveals wide disparities in the number of marijuana-related reports filed by financial institutions across different states. California led the pack with 3,812 reports, followed by Oklahoma with 2,735 reports. Colorado, the first state to legalize adult-use cannabis, had a relatively lower number of reports, with 735.
Despite the stability in the data, advocates and lawmakers have called for updated guidance on cannabis banking policy to normalize the sector and provide banks with greater assurances. The industry is holding out hope that a pending proposal to reschedule cannabis as a Schedule III drug, rather than its current Schedule I classification, could make banks more willing to engage with the sector.
A bipartisan coalition of 32 state and territory attorneys general has called on Congress to pass a marijuana banking bill to free up financial services access for licensed cannabis businesses. Meanwhile, the Democratic Senate sponsor of the marijuana banking bill has expressed hope that the legislation will be considered sooner rather than later.
The trend in banks working with marijuana businesses comes amid an ongoing push for federal legalization and reform. President Donald Trump has been considering a proposal to reschedule cannabis, which could have significant implications for the industry. If passed, the proposal could allow marijuana businesses to take federal tax deductions and potentially make banks more willing to engage with the sector.
