About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (August 26, 2024)

handle is hein.crs/goveqlc0001 and id is 1 raw text is: Effect of Rescheduling Marijuana on Access to Financial Services August 26, 2024 Although federal law prohibits most marijuana-related activities, a majority of U.S. states and territories have adopted laws permitting certain types of marijuana sales and other marijuana-related activities. Many financial institutions, however, are unwilling to provide common banking products and services to state-authorized marijuana businesses because of the potential legal consequences they could face under federal law. Marijuana is currently classified as a Schedule I drug under the federal Controlled Substances Act (CSA). The CSA criminalizes the possession, distribution, and manufacturing of Schedule I substances, except for use in federally approved research studies. Additionally, federal anti-money laundering (AML) laws (i.e., Sections 1956 and 1957 of the criminal code) criminalize the handling of proceeds derived from marijuana manufacturing and sales in violation of the CSA. In August 2023, the Department of Health and Human Services (HHS) recommended that, based on its assessment of marijuana's medical uses and potential for abuse and chemical dependency, marijuana should be moved from Schedule I to Schedule III under the CSA. On May 21, 2024, the Department of Justice (DOJ) issued a notice of proposed rulemaking that would implement HHS's recommendation. This proposal has raised questions about how rescheduling would affect the provision of financial services to state-sanctioned marijuana businesses. As discussed below, rescheduling marijuana as DOJ has proposed is unlikely by itself to eliminate the legal risks of financial institutions serving marijuana businesses and, thus, might not significantly increase marijuana businesses' access to financial services. This Legal Sidebar analyzes the liability that financial institutions risk under current federal law by serving state-sanctioned marijuana businesses, as well as how those risks might be affected if marijuana is moved to Schedule III. The Legal Sidebar finishes with a discussion of legislative options that Congress might consider for increasing access to financial services for marijuana businesses, notably including S. 2860, the Secure And Fair Enforcement Regulation Banking Act (SAFER Banking Act), and H.R. 2891, the Secure And Fair Enforcement Banking Act of 2023 (SAFE Banking Act). Federal Financial Laws and Marijuana Businesses A number of federal laws prohibit activities involving the possession and distribution of both marijuana and assets tied to marijuana sales and distribution. Congressional Research Service https://crsreports.congress.gov LSB11218 CRS Legal Sidebar Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most