As a proposal to reschedule marijuana awaits a final decision, a new report found that even if that happens, it’s not likely to have much of an impact on allowing state-legal cannabis businesses from accessing the U.S. banking system.
The Justice Department’s proposal is “is unlikely by itself to eliminate the legal risks of financial institutions serving marijuana businesses and, thus, might not significantly increase marijuana businesses’ access to financial services,” says the report from the Congressional Research Service.
Since marijuana is currently a considered a Schedule I substance, banks don’t do business with marijuana companies for fear of violating the Controlled Substances Act, the Bank Secrecy Act, and anti-money laundering laws.
The CRS report notes that even if marijuana moved to Schedule III as proposed, banks would still face legal risks under federal law.
CRS notes that legislation under consideration by Congress, such as the SAFER Banking Act in the Senate, and the already passed SAFE Banking Act in the House, “would constrain federal banking regulatory authority to penalize depository institutions for providing financial services to marijuana businesses complying with state laws,” as well as provide some legal protection against federal laws.
H/T: seekingalpha.com
