Marijuana Banking's Massive Leap Forward

Marijuana Banking's Massive Leap Forward

By Steve Schain, Senior Attorney at Hoban Law Group.

Spanning 31 states and generating $7.2 billion in 2017, the US's legalized marijuana industry's greatest obstacle, banking, was significantly reduced according to the Department of the Treasury's ("Treasury") Financial Crimes Enforcement Network's ("FinCEN") September 30, 2017 "Marijuana Banking Update".

While still only a fraction of nation's 11,954 regulated banks and credit unions provide marijuana related businesses ("MRBs") with financial services, this 26% increase in financial institutions reflects a staggering growth and proof that a cost effective solution exists to dealing with bankings' thorniest issue: profitability in light of compliance and suspicious activity reports (“SARs”) requirements.

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