420 with CNW — Data Shows More Banks Are Working with Cannabis Businesses as Clients

Data recently released by the Financial Crimes Enforcement Network shows that the number of financial institutions working with cannabis businesses grew in 2021. While it isn’t clear if this increase is associated with moves in Congress to approve a marijuana banking reform measure, this federal data shows that banks feel more comfortable serving cannabis businesses located in state-legal markets.

As of September 2021, there were 755 credit unions and banks that revealed that they were actively servicing marijuana clients. This is a slight increase from the figure recorded in the previous quarter.

Despite the presence of the Financial Crimes Enforcement Network guidance, which financial institutions can use to navigate this space, legislators are focused on enacting clear protections that will be accomplished through the Secure and Fair Enforcement (“SAFE”) Banking Act. The SAFE Banking Act will prohibit federal regulators from penalizing financial institutions such as banks that serve legitimate cannabis businesses.

However, some reluctance within the banking sector may remain when it comes to serving cannabis businesses until the bipartisan measure is approved, as these institutions may still be penalized. Last year we saw a consistent and substantial decrease in the number of credit unions and banks that revealed that they were serving cannabis businesses.

In its latest report on marijuana banking data, the Financial Crimes Enforcement Network revealed that the reductions recorded in the number of financial institutions that were actively offering banking services to cannabis businesses in the short term could be explained by filers exceeding the 90-day filing timeframe for reports on suspicious activity. Previous reports from the agency note that it stopped including businesses that dealt with hemp in its reports since hemp was legalized in 2018 under the farm bill. The agency, which is part of the Department of Treasury, did not mention the possible impact of the COVID-19 pandemic on trends in cannabis banking in its latest report.

The SAFE Banking ACT has been approved in the House six times. However, it has stalled in the Senate under both Democratic and Republican control. Chuck Schumer, the Senate Majority Leader, recently signaled that he would be open to approving the banking measure if provisions on equity were included. The sponsor of this comprehensive reform, Rep. Ed Perlmutter, has also revealed that he was confident that the measure would finally receive approval during this session. Perlmutter is set to retire at the end of this current session.

As more banks open their doors to legitimate cannabis companies such as Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF), the industry will have fewer challenges with regards to basic banking services, and their operations will be eased somewhat, especially when one considers how cash-only businesses are vulnerable to robbery and other related risks.

NOTE TO INVESTORS: The latest news and updates relating to Red White & Bloom Brands Inc. (CSE: RWB) (OTCQX: RWBYF) are available in the company’s newsroom at https://cnw.fm/RWBYF

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have questions or are you interested in working with CNW420? Ask our Editor

Denver, Colorado
303.498.7722 Office

CNW420 is part of the InvestorBrandNetwork.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s