Cannabis Business Banking in Michigan

Key Points

• Michigan's Legislative Support: House Bill 5144 provides state-level protections for financial institutions working with licensed cannabis businesses, encouraging banking relationships.
• Support for SAFE Banking Act: Michigan leaders advocate federal banking reform, citing risks of cash-only cannabis operations and limited financial access for businesses and workers.

Cannabis Banking Oversight and Legal Protections in Michigan

The Michigan Department of Insurance and Financial Services (DIFS) regulates state-chartered banks and credit unions, guiding them on cannabis banking while advising consultation with legal counsel due to complex federal and state laws.

Michigan's House Bill 5144 protects financial institutions serving licensed cannabis businesses from state-level penalties, encouraging them to offer vital banking services to the industry.

• Michigan's cannabis industry includes an estimated 200 large-scale cultivators and around 750 retail cannabis stores.

• Are you a Michigan-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .

Michigan’s Support for the SAFE Banking Act

Advocacy for cannabis banking reform has gained momentum in Michigan. A coalition of stakeholders, including the Michigan Chamber of Commerce, has urged Congress to pass the SAFE Banking Act. The Chamber emphasized the challenges faced by workers in the state’s legal cannabis industry, including limited access to basic financial services like home and car loans.

Efforts from the Attorney General to advance the SAFER Banking Act of 2023 have also highlighted the risks of operating cash-only cannabis businesses. Supporters stress that the legislation would provide clear guidelines for financial institutions, enabling them to safely serve state-licensed cannabis enterprises while promoting equitable access to regulated financial services.

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