Federal Report Confirms Ongoing Banking Barriers for Marijuana Businesses

A new Government Accountability Office report shows state-licensed marijuana businesses still struggle to obtain and keep banking services. While about 1,000 banks and credit unions filed cannabis-related reports in 2024, many operators face high fees, sudden account closures, and limited access to loans and credit cards. GAO found no evidence of penalties imposed solely for serving cannabis businesses.

Many banks and credit unions remain reluctant to serve state-licensed marijuana businesses, according to a new Government Accountability Office report based on focus groups and interviews with industry operators, financial institutions, advocacy groups, and federal agencies.

GAO concluded that although there is no indication any financial institution has ever been penalized solely for working with the cannabis industry, perceptions of regulatory risk mean obtaining and maintaining financial services remain difficult for cannabis-related businesses, or CRBs.

FinCEN data shows the number of financial institutions filing reports that indicate they work with marijuana businesses rose between 2015 and 2024, reaching about 1,000 banks and credit unions in 2024. The agency noted that figure remained relatively small compared to the total nationwide.

Most cannabis industry participants GAO spoke to did have bank accounts, but they reported problems including closures with little warning and high fees. Two focus group participants said they paid $100,000 or more per year, and all focus groups with institutions serving CRBs said those institutions charge higher fees than for other customers.

CRB owners and managers also described lengthy account-opening processes, sometimes waiting weeks or months, and some said they engaged with multiple financial institutions before successfully opening an account.

Beyond basic bank accounts, participants reported difficulties with loans, investments, payroll services, credit cards, and electronic payments. GAO said customer payments are hard largely because two major credit card companies prohibit cannabis purchases.

The banking friction extends to individual marijuana industry workers, according to cannabis industry associations. Challenges include maintaining bank accounts and obtaining car loans, mortgages, or life insurance, though treatment may vary by an individual's role within the business.

Financial institutions cited fears of adverse supervisory actions from federal banking regulators, but GAO found no evidence of civil or criminal penalties solely for providing services to CRBs. DOJ officials said their data systems do not easily identify cases involving financial institutions that serve CRBs.

Banks also cited operational workload and compliance burden tied to FinCEN's 2014 guidance, which requires regular suspicious activity reports on cannabis customers.

GAO conducted the review after a request from Senators Raphael Warnock, Elizabeth Warren, Tina Smith, and John Fetterman. If a safe harbor law were enacted, some institutions might serve cannabis businesses while others would wait for broader reforms such as federal legalization.