ARLINGTON, Va.—NAFCU has posted a new version of its marijuana banking brief available online, and said it is looking to provide credit unions with comprehensive updates on IRS guidance, litigation, federal legislative efforts, and state-level marijuana laws.
“While NAFCU has not and will not take a position on the legalization or decriminalization of marijuana, the association has developed resources and provides updates on the political and regulatory landscape surrounding marijuana banking to help credit unions better understand the current state of play in this area,” the trade association said.
According to NAFCU, key updates in the new brief include:
- State Laws: After the 2020 election, there are now 36 states that have legalized medical marijuana and 15 that have legalized adult use of the drug. NAFCU said its new brief provides some background on the legalization movement, noting that it is still categorized as a Schedule I substance at the federal level.
- Hemp Banking: The issue of providing financial services to hemp businesses is separate from that of serving marijuana-related businesses (MRBs), the trade group said, adding the issue brief details the implications of the 2018 Farm Bill. That bill decriminalized hemp as a Schedule I substance and allows hemp cultivation and removed barriers to its sale – so long as hemp is produced in a manner consistent with the law – among other things, and notes potential implications from legislative changes that could impact marijuana banking.
- Federal Legislation: Earlier this month, the House passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would decriminalize marijuana at the federal level if it became law and would address previous marijuana convictions and tax revenue issues. While the Senate will not consider the legislation this session, the issue could be reintroduced for consideration in the 117th Congress, NAFCU noted.
- IRS: The IRS recently issued guidance in the form of FAQs reminding MRBs of their tax obligations following an internal watchdog report earlier this year that criticized the agency for failing to adequately advise MRBs about federal tax law compliance and therefore failing to collect millions in unassessed tax dollars. NAFCU said its issue brief highlights topics covered by the FAQs, as well as regulatory resources from other agencies including the NCUA, Financial Crimes Enforcement Network, and more.
- Litigation: NAFCU said its issue brief also details some key lawsuits related to credit unions serving MRBs, hemp transportation, and a recent case on the federal marijuana prohibition that the Supreme Court declined to take up the case.