Federal Report Finds Most Banks Still Refuse Cannabis Business Accounts

Federal Report Finds Most Banks Still Refuse Cannabis Business Accounts

Many banks are still reluctant to provide services to state-licensed marijuana businesses, according to a new federal report. The Government Accountability Office (GAO) conducted a series of focus groups and interviews with cannabis industry operators, financial services providers, advocacy groups and federal agencies to study the issue.

The agency’s report, published on Tuesday, concludes that while there is “no indication” any bank has ever been penalized solely for working with the marijuana industry, an ongoing perception of regulatory risks means that “obtaining and maintaining financial services remain difficult” for cannabis-related businesses (CRBs).

Relatively Few Institutions Serve the Industry

Data from the Financial Crimes Enforcement Network (FinCEN) shows that the number of financial institutions that filed reports indicating they work with marijuana businesses increased between 2015 and 2024, with about 1,000 banks and credit unions doing so in 2024 but that it “remained relatively small compared to the total nationwide.”

While most cannabis industry participants that GAO spoke to did have bank accounts, they reported various “difficulties.” For example, they said financial institutions closed their accounts, sometimes with little warning, or charged them high fees.

High Fees and Lengthy Account Openings

Participants in seven of eight focus groups described paying monthly or annual account fees, with two focus group participants stating they paid $100,000 or more per year. Consistent with these reports, participants in all focus groups with institutions that serve CRBs said their institutions charge CRBs higher fees than other types of customers.

CRB owners and managers also noted that the process of opening an account was lengthy, with some waiting weeks or months before the account was operational.

The GAO report, based on its focus groups and interviews with cannabis industry operators, financial services providers, advocacy groups and federal agencies, found that despite the absence of any identified penalty against a bank solely for working with the marijuana industry, the perception of regulatory risk continues to shape banks’ willingness to serve these businesses.

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