A group of 20 Democrats led by Sen. Elizabeth Warren (D-MA) are urging the Treasury Department to revise “out-of-date guidance” related to state-legal marijuana businesses and the Bank Secrecy Act, according to a letter obtained by Punchbowl News.

Democrats argue that guidelines published in 2014 during the Obama presidency predate “action by many states to legalize marijuana possession and sales” and must therefore be updated. 

“The updated guidance should clarify that if a marijuana-related act has been expunged, pardoned, is no longer illegal under state law, or is not disqualifying for obtaining a state marijuana license or permit,” lawmakers wrote, “then financial institutions should not consider that offense a ‘red flag’ when conducting customer due diligence of marijuana businesses.”

Under existing guidance, FinCEN asks banks and credit unions to …

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