New York’s financial regulator is encouraging state-chartered banks and credit unions to work with medical marijuana and industrial hemp businesses.
The New York Department of Financial Services released a guidance to the state’s financial institutions July 3 to clarify that the state will not impose any regulatory action against banks that work with companies in the medical marijuana industry.
Maria T. Vullo, New York State superintendent of financial services, wrote that the department “stands ready to work with our chartered institutions to assist them in moving forward toward commencing operations in a safe and sound manner.”
As federal and state enforcement standards on the industry appear to conflict, the state DFS said it has received inquiries from financial institutions about establishing banking relationships with companies involved in either medical marijuana or industrial hemp.
Marijuana is still considered a Schedule I drug by the federal government, meaning federal regulators view the substance as highly addictive with no accepted medical use. Even as more than half of U.S. states have adopted some form of medical marijuana program, the New York DFS said the federal drug classification has kept banking institutions away from the industry.
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