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Credit unions arm Congress with truths on cannabis banking

WASHINGTON, DC (December 18, 2018) — An amendment to the FIRST STEP Act (S. 756) was filed on Monday which would clarify the federal treatment of marijuana in states where it is legal. Credit Union National Association (CUNA) wrote in support of the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act of 2018 as it would permit credit unions in those states to serve legal cannabis-based businesses.

“Right now, the communities in which cannabis businesses operate and the credit unions and other financial institutions that are trying to serve these businesses face a number of risks – some of which are known, others which are unknown, but all which can be mitigated through legislation that provides a safe harbor to bank these businesses,” said CUNA Chief Advocacy Officer Ryan Donovan. “If not through this legislation, we hope Congress will act on this matter as soon as possible, and we appreciate the leadership of Senators Gardner and Warren in this effort.”

Medicinal marijuana is legal in 29 states, Puerto Rico, and Guam while recreational marijuana is legal in nine states and the District of Columbia and decriminalized in 18 states. The trade association and its members are agnostic on the legalization of cannabis but recognize that the disparity between state and federal law present a problem for the market and for credit unions.

For credit unions, the most critical issue is public safety.  Many are knowingly and unknowingly serving cannabis businesses without sufficient safe harbor to do so.  The risk for communities is that these businesses operate on cash because they lack access to banking services.

CUNA encourages credit unions to be aware of the risks to unknowingly providing services to businesses in the cannabis market and recommend that all lenders conduct due diligence in borrowers, particularly in states where cannabis is legal.


About CUNA

Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.

Contacts

CUNA Communications
communications@cuna.coop

 

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