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Panel shows opportunities, potential pitfalls of marijuana banking
Credit union representatives – who indicated Monday that marijuana banking was among the top issues they wanted to learn more about while at Caucus – got an update on the regulatory landscape, consumer trends and more from a panel of diverse experts on the issue.
NAFCU Director of Regulatory Affairs Ann Kossachev moderated the panel, which focused on financial institutions' ability to provide services to marijuana-related businesses (MRBs), featuring Tim Moore, general counsel for Allegacy Federal Credit Union (Winston-Salem, N.C.), Becky Dansky, executive director for Safe and Responsible Banking Alliance, and Garth Van Meter, director of legislative affairs for Smart Approaches to Marijuana.
Moore noted the confusion around marijuana banking, especially considering the recent legalization of industrial hemp, and Dansky further expanded on the conflicts between state and federal law and the public safety issue of MRBs working primarily in cash. She added that among the financial institutions serving MRBs, most are credit unions.
Moore discussed congressional efforts to provide some clarity on the issue, such as the SAFE Banking Act (H.R. 1595), which would provide a safe harbor for credit unions and other lenders that serve MRBs in states that have legalized the drug. Van Meter, however, cautioned against separating the financial services issue from the legalization issue, encouraging credit unions to consider all aspects before entering marijuana banking.
While NAFCU has not taken a position on the legalization or decriminalization of marijuana, the association encourages Congress to consider legislative complexities and notes the benefits of a strong safe harbor for financial institutions that wish to serve MRBs.
A majority of states have legalized marijuana in some form – either medicinally or recreationally – and Dansky predicted even more will consider the change within the next year. “We’ve reached a point where it’s undeniable where Americans stand on this issues,” she said.
NAFCU has available a new FAQ document and several other resources on marijuana banking, including a pros and cons document and an extensive issue brief. NAFCU will continue to update these documents as discussions progress on Capitol Hill, and as credit unions raise additional questions.
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