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ABA: The American Bankers Association
Position Paper

Cannabis Banking Coalition Position Statement

  • Published June 11, 2018

The conflict between state and federal law causes concern among both state and federally chartered banks that rely on federal agencies for regulatory oversight, insurance and access to funding and the payment system.

Although states continue to legalize medical and/or recreational marijuana for personal use, it remains illegal under federal law. The conflict between state and federal law causes concern among both state and federally chartered banks that rely on federal agencies for regulatory oversight, insurance and access to funding and the payment system.
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A majority of banks will not risk providing depository or lending products and services to marijuana-related businesses (MRBs) because of this conflict. As such, this leaves a state-legal business sector largely without access to banking products and services. This is a growing concern nationwide due to the increased public safety issues arising out of an industry that currently operates mostly in cash. Cash-only businesses pose a risk to public safety and create challenges ranging from processing customer payments to record keeping and tax collection.

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