GAO report finds cannabis businesses still face banking hurdles
The GAO says state-licensed cannabis growers, manufacturers and sellers continue to struggle for bank accounts and loans despite 2014 FinCEN guidance.
The Government Accountability Office released a report documenting that, although the Financial Crimes Enforcement Network issued guidance in 2014 on serving cannabis-related businesses (CRBs) under the Bank Secrecy Act, many CRBs still encounter difficulty obtaining basic banking services. The guidance directs institutions to collect detailed customer information and to file suspicious activity reports (SARs) for certain CRB transactions, with regulators overseeing compliance through BSA examinations.
GAO focus groups and interviews with financial institutions revealed that potential legal and regulatory sanctions, as well as the costs of BSA compliance, deter many banks from serving CRBs. Conversely, some institutions cite community needs or business opportunities as reasons to provide services. FinCEN data show that the number of institutions reporting SARs for CRB-related transactions rose from 2015 to 2019 and remained relatively steady through 2024; about 1,000 banks and credit unions filed such reports in 2024. The data do not clarify how many institutions maintain ongoing CRB customers, and some reports may involve only ancillary businesses.
CRB owners and managers reported continued challenges, including account closures, high account fees, elevated loan interest rates, and the inability to accept credit-card payments because two major card networks prohibit cannabis purchases. Employees of CRBs also face obstacles accessing personal financial services because of their industry affiliation.
GAO's methodology included a review of agency guidance, FinCEN SAR data for fiscal years 2015-2024, and relevant literature. The study also conducted nine focus groups and 11 interviews with 74 financial institutions, representing varied asset sizes and policies, and eight focus groups with 51 CRB owners and managers. The report was prepared in response to a request to assess federal guidance, institutional decision factors, and the banking challenges faced by CRBs.
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