WASHINGTON — Cannabis businesses continue to face difficulties obtaining bank accounts, loans and other financial services despite indications that more financial institutions are serving the industry, according to a new Government Accountability Office report.
The GAO said the conflict between state and federal cannabis laws remains a significant obstacle for financial institutions considering whether to serve cannabis-related businesses.
Many states have legalized cannabis for medical or recreational purposes and license businesses to grow, manufacture or sell cannabis products. Cannabis, however, remains illegal under federal law with limited exceptions, potentially exposing financial institutions serving those businesses to legal and regulatory risks.
Federal agencies have issued guidance intended to help banks and credit unions provide services to cannabis businesses while complying with federal requirements. But the GAO found the guidance has not eliminated the industry’s banking challenges.
Legal Risks, Costs Remain Obstacles
Financial institutions may remain reluctant to serve cannabis-related businesses because of legal concerns and the additional costs associated with complying with federal requirements, the GAO said.
While available data indicates more financial institutions have begun serving cannabis businesses since 2015, some businesses continue to report difficulty obtaining basic banking services.
Among the challenges identified by the GAO are obtaining deposit accounts and securing loans.
The lack of access can leave cannabis businesses with fewer financial options than companies operating in other industries, even when the businesses are licensed and operating legally under state law.
The GAO report, titled “Banking Services: Cannabis Businesses Face Access Challenges,” examines the continuing effects of the conflict between state legalization and federal cannabis law on access to the financial system.
