Why It Matters

Cannabis-related businesses experience bank account closures, high fees for bank accounts, and high interest rates for business loans, according to a recent Government Accountability Office (GAO) report, publicly released Sept. 8, 2026. The report exposes a fundamental contradiction in American financial policy: cannabis is legal in many states, yet federal law treats it as a controlled substance, creating a chilling effect on banks willing to serve the industry.

Approximately 1,000 banks and credit unions filed suspicious activity reports on cannabis-related transactions in 2024. Cannabis-related business owners and employees face challenges accessing personal financial services. The policy creates perverse incentives: it pushes legitimate state-regulated businesses toward the informal economy, undermines law enforcement's ability to monitor financial flows, and perpetuates economic disparities rooted in the War on Drugs.

The report's core finding is simplicity: federal policy has created a system where legal state activity remains financially isolated from the mainstream banking system.

The Big Picture

Many states have legalized cannabis for medical or recreational use, yet cannabis remains an illegal substance at the federal level, with certain exceptions. This legal mismatch has persisted for years, creating uncertainty that ripples through the financial sector.

In 2014, the Financial Crimes Enforcement Network (FinCEN) issued guidance to financial institutions. The guidance instructed banks to gather thorough information on cannabis-related business customers and file suspicious activity reports for certain transactions involving such businesses. The intent was to allow banks to serve the industry while maintaining compliance with anti-money-laundering rules.

The number of financial institutions reporting services to cannabis-related businesses increased from 2015 to 2019. However, this growth stalled. The number of financial institutions reporting services to cannabis-related businesses remained relatively steady from 2019 through 2024.

This stagnation masks divergent motivations among those institutions that do participate. Some financial institutions decide to serve cannabis-related businesses to meet community needs, while others view it as a business opportunity. Yet both groups operate within a constrained market where the regulatory risks are real and the compliance costs are substantial.

The Bottom Line

One finding stands out: GAO found no indication that any bank has ever been penalized solely for working with the marijuana industry. GAO found no indication that any bank has ever been penalized solely for working with the marijuana industry. Yet, the absence of enforcement has not translated into banking acceptance.

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