Cannabis Banking Glossary

FinCEN marijuana guidance

FinCEN's 2014 guidance explains how banks can serve marijuana-related businesses while meeting Bank Secrecy Act obligations. It sets out due diligence steps and three marijuana-specific SAR types, and it remains in effect.

What the guidance is

On February 14, 2014, FinCEN issued guidance titled "BSA Expectations Regarding Marijuana-Related Businesses" (FIN-2014-G001). It explains how banks and credit unions can provide services to businesses that are legal under state law while meeting their Bank Secrecy Act obligations. It was issued alongside a Department of Justice memo on enforcement priorities, often called the Cole Memo.

The Cole Memo was rescinded in 2018. FinCEN's guidance was not, and institutions that serve cannabis businesses continue to rely on it.

What it asks banks to do

The guidance expects institutions to perform thorough due diligence on each marijuana-related customer, including:

  • Verifying with the state that the business is licensed and registered.
  • Reviewing the license application and related documents.
  • Understanding the business's normal and expected activity, including its products and customers.
  • Monitoring publicly available sources for adverse information about the business and its owners.
  • Watching account activity on an ongoing basis for red flags.
  • Periodically refreshing this information as the relationship continues.

It also created three marijuana-specific Suspicious Activity Report types: Marijuana Limited, Marijuana Priority and Marijuana Termination.

What it means for operators

Expect your bank to ask for licensing records, ownership details, financial statements and explanations of unusual activity, both when you open an account and over time. Having these ready makes onboarding faster and relationships more stable.

How Safe Harbor helps

Safe Harbor built its program around this guidance in 2015 and handles the due diligence and reporting work for its partner institutions. Operators can start an application with a dedicated specialist.

Related terms

Suspicious Activity Report · Customer and enhanced due diligence · Full glossary

This page is for general information only and is not legal advice. Last reviewed November 2026.