What Happened?

Thousands of marijuana businesses operating legally under state law still can't open a bank account, accept credit cards, or pay employees through direct deposit, and a new federal report says the problem isn't going away on its own. The Government Accountability Office (GAO), the nonpartisan watchdog agency that audits federal programs for Congress, released a report on Sept. 8, finding that most banks and credit unions refuse to serve state-licensed cannabis companies despite federal guidance issued more than a decade ago. The GAO drew on focus groups and interviews with 74 financial institution participants and 51 cannabis business owners and managers across the country. [](#ngr-504e3751-645e-4a87-b3b1-259e361d337a)

Why Does it Matter to Me?

Business owners told the GAO they face account closures, unusually high fees, and blocked payment processing. Employees at those businesses report trouble accessing personal financial services tied to their jobs. Because many banks won't touch them, some cannabis businesses are forced to operate almost entirely in cash. That creates safety risks and makes basic things, like paying taxes or making payroll, far harder and riskier than they are for other small businesses.

About 1,000 banks and credit unions filed reports with cannabis-related terms with the Financial Crimes Enforcement Network (FinCEN), the Treasury Department unit that tracks suspicious financial activity, in 2024. That number has barely moved since 2019, the GAO found.

Both Sides, Now

Four Democratic members of the Senate Banking Committee: Sen. Elizabeth Warren of Massachusetts, Sen. Raphael Warnock of Georgia, Sen. Tina Smith of Minnesota, and Sen. John Fetterman of Pennsylvania, commissioned the GAO study. They commissioned the GAO study to examine why a 2014 FinCEN guidance memo, which told banks how to serve cannabis businesses while staying compliant with federal law, has done so little to open the market.

Banks and credit unions told the GAO their reluctance comes down to two things: fear of legal and regulatory penalties, and the high cost of complying with Bank Secrecy Act requirements, the federal rules that require financial institutions to monitor and report suspicious transactions. Cannabis remains illegal under federal law, even as many states have legalized it in some form.

Some participants in the GAO study said a federal "safe harbor" law, one that would shield banks from civil and criminal liability for serving state-legal cannabis businesses, could prompt their institutions to start or expand services. But the GAO's findings suggest legal protection alone may not be enough without broader federal steps, such as changing cannabis's classification under federal drug law or reducing compliance costs.

What Happens Next?

There is no vote scheduled in Congress on a safe harbor bill. Legislation along those lines has been introduced in past sessions but has not cleared both chambers. For anything to change, Congress would need to pass a new law, the president would need to sign it, and federal regulators would need to update their guidance accordingly. Until that happens, state-legal cannabis businesses remain largely locked out of conventional banking.

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