Letter to Janet Yellen, Chairman of the Board of Governors of the Federal Reserve System; Debbie Matz, Chairman of the National Credit Union Administration Board; Thomas J. Curry, Comptroller of the Currency; Martin J. Gruenberg, Chairman of the Federal Deposit Insurance Corporation; Jacob J. Lew, Secretary of the Department of Treasury; Jennifer Shasky, Director of Financial Crimes Enforcement Network - Federal Financial Regulators to Provide Clear Guidance so that Legal Marijuana Businesses Can Access Banking Services

Letter

Janet L. Yellen

Chairman

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue, NW

Washington, DC 20551

Debbie Matz

Chairman

National Credit Union Administration Board

1775 Duke Street

Alexandra, VA 22314

Thomas J. Curry

Comptroller of the Currency

Office of the Comptroller of the Currency

400 7th St. SW

Washington, DC 20429

Martin J. Gruenberg

Chairman

Board of Directors of the Federal Deposit Insurance Corporation

550 17th Street, NW

Washington, DC 20429

Jacob J. Lew

Secretary of the Treasury

U.S. Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, DC 20220

Jennifer Shasky Calvery

Director

Financial Crimes Enforcement Network

P.O. Box 39

Vienna, Virginia 22183

Dear Financial Regulators,

As you are aware, the citizens of Oregon, Colorado, Washington, Alaska, and the District of Columbia recently legalized marijuana for recreational and medicinal purposes and nineteen states allow for medicinal marijuana. Ensuring marijuana-related businesses have access to financial services is critical not just for the safety of these communities but also to help spur economic growth.

The financial institutions providing banking services to legitimate marijuana-related businesses are required to file marijuana suspicious activity reports (SARs) with Treasury's Financial Crimes Enforcement Network or FinCEN. While the total number of banks and credit unions offering services has not been reported, FinCEN confirmed to Congress that firms are filing these reports.

However, many marijuana-related businesses are experiencing difficulty accessing financial services and must operate all-cash operations. Operating on an all-cash basis for these businesses makes it difficult for them to function, as well as for states to collect tax revenue. Forcing them to operate in all cash also creates a serious public safety risk for the businesses and the neighboring community.

While the marijuana SARs reports are an option, most banks and credit unions have been reluctant to provide financial services to marijuana-related businesses due to concerns their CAMELS supervisory rating will be penalized from examiners. However, with clearer guidance offered by all of their regulators, financial institutions will be more likely to serve these legal businesses and allow them to access our banking system without fearing repercussion.

We are writing today to ask you, all of the federal financial regulators, to collaborate with FinCEN on their February 14 memo and issue a joint guidance governing how financial institutions can effectively serve marijuana-related businesses. Without a joint guidance providing direction on how to operate from their prudential regulators, banks and credit unions will continue to lack the certainty they need to operate in this market.

We were pleased to learn that the federal banking agencies are indeed having discussions with FinCEN about how financial institutions can serve this market and we look forward to your prompt response to our request.

Source