Warren, Merkley, Warnock, Blumenauer, 16 Lawmakers Push For New Marijuana Banking Guidance for Fairer Access to Financial Services for Legal Marijuana Businesses

Letter

"FinCEN's 2014 guidance predates action by many states to legalize marijuana possession and sales, and it unnecessarily red-flags businesses whose owners have been engaged in marijuana activities that are no longer criminalized at the state level. The updated guidance should clarify that if a marijuana-related act has been expunged, pardoned, is no longer illegal under state law, or is not disqualifying for obtaining a state marijuana license or permit (i.e. "state-sanctioned marijuana activity'), then financial institutions should not consider that offense a "red flag' when conducting customer due diligence of marijuana businesses. This would be an important step to promote fairness in the provision of financial services to marijuana businesses that participate in state-sanctioned marijuana activity."

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"FinCEN's red flags bake a penalty for non-violent marijuana activity into lending decisions -- even as states overwhelmingly move to eliminate such penalties… State and local cannabis regulators across the country have raised FinCEN's red flag policy as a significant issue impacting their efforts to responsibly and fairly license and regulate marijuana businesses. FinCEN should ensure its guidance does not impose barriers to the efforts of states to provide business opportunities to those with previous marijuana offenses,"

Source