Federal Update on Cannabis Banking Trends

OG Article By Kyle Jaeger

September 23 2025

Overview

Federal officials released data on banks serving cannabis businesses. Most institutions show little concern for these clients.

FinCEN Data

The Financial Crimes Enforcement Network (FinCEN) tracks suspicious activity reports (SARs) for cannabis firms. Latest data indicates stable banking services despite federal prohibition.

80% of SARs are "cannabis limited." This means businesses comply with state laws and federal guidelines.

Banking Numbers

As of Q4 FY 2024, 816 banks and credit unions serve cannabis businesses. This is down from 831 but up from early years.

State Variations

California leads with 3,812 SARs. Oklahoma follows with 2,735. Colorado has 735; Oregon has 424.

SAR Categories

"cannabis limited" signals routine transactions. FinCEN takes no action on these.

Guidance and Challenges

FinCEN's 2014 guidance helps banks navigate prohibition. Yet, many remain reluctant due to Schedule I status.

Potential Changes

Rescheduling to Schedule III could normalize banking. It would allow tax deductions under IRS code 280E.

Industry Push

Bipartisan lawmakers seek laws to protect banks serving state-licensed cannabis firms.