DOJ Medical Cannabis Rescheduling Could Rekindle Bank Interest

Federal law has long classified cannabis as a Schedule I controlled substance. Even though many states have legalized it for medical or adult use, banks and credit unions still face compliance risks involving anti-money laundering, deposits and lending. Moving cannabis to Schedule III is expected to ease tax and operating pressures on the industry while increasing demand for compliant fintech, payment and account services.

The U.S. Department of Justice has announced that it will reclassify medical cannabis as a Schedule III substance. The move is expected to ease federal legal concerns for financial institutions serving the industry and prompt banks and credit unions to reconsider entering the market. Available information on the event does not specify the announcement date, implementation timeline or any amounts involved. Attention will now turn to the final rule and guidance from banking regulators.