Supervisors of state chartered credit unions have written toCongress in support of legislation that would clarify the legalityof providing financial services to legalmarijuana businesses.

“This legislation represents an important first step in curingthe ambiguity around serving these businesses and theiraffiliates,” NASCUS President/CEO LucyIto wrote in a July 15 letter to Sen. Jeff Merkley(D-Ore.) and Sen. Cory Gardner (R-Colo.), the primary sponsors ofthe Marijuana Business Access to Banking Act of 2015 (S. 1726). Itoalso addressed the letter to Rep. Earl Perlmutter (D-Colo.) andRep. Denny Heck (D-Wash.) who have sponsored similar legislation(H.R. 2076).

Ito pointed out that while 17 states and the District ofColumbia have legalized marijuana use in some form, it remainsillegal under federal law, creating tension that leaves statechartered credit unions torn between their obligations to followfederal law and serve their communities.

“Resolving this conflict of law will make the communities wherethis activity has been legalized and the financial institutionsserving those communities safer,” Ito wrote. “It will allowbusinesses operating in accordance with state law to servecustomers, pay taxes and minimize the risk of attracting violentcrime. It will bring non-law abiding businesses under the directand thorough scrutiny of state and federal supervisory authorities.Finally, it will enable financial institutions to pursue businessand development plans with a clear understanding of regulatoryexpectations.”

Ito cited data from the U.S. Treasury's Financial CrimesEnforcement Network that more than 100 financial institutions havebegun serving legal marijuana firms.

“Current guidance from the Department of Justice and FinCEN,while helpful, leaves financial institutions exposed to the risk ofsignificant criminal, civil and administrative action,” Ito pointedout. “If left unresolved, the uncertain status of marijuanabusinesses under Federal law could translate to real losses forcommunity financial institutions, not to mention the ongoing threatof violent robberies in local communities where legal marijuanabusinesses are forced to operate with dangerously large amounts ofcash.”

Ito argued that if financial institutions have robust BankSecrecy Act and anti-monetary laundering programs, along withstrong internal controls, marijuana businesses should be able toaccess banking services and that, if they did, the regulators couldalso better regulate those accounts and institutions.