Citigroup is reevaluating its policy on testing job applicants for marijuana use as Wall Street banks weigh whether to work with the $75 billion cannabis industry

Jeremy Berke

Apr 16, 2019, 20:29 IST

Citigroup is reevaluating its policy on testing job applicants for marijuana use as Wall Street banks weigh whether to work with the $75 billion cannabis industry

"The Wolf of Wall Street"/Paramount Pictures

We'd all love to have a toast with Leonardo DiCaprio on a yacht.

Citigroup is reevaluating its policy on testing job applicants for marijuana use as Wall Street banks weigh whether or not to work with the industry, a spokesperson confirmed.
Last week, New York City Council passed a bill that would bar employers in the city from forcing job applicants to take drug tests for marijuana use. The move would affect banks headquartered in New York City.
A spokesperson for Goldman Sachs told Business Insider the bank tests job applicants for drug use, but not marijuana. Morgan Stanley doesn't test applicants for drug use.

In a sign of the changing times, Citigroup has held ongoing conversations around reevaluating its policy on screening job applicants for marijuana use as Wall Street banks weigh whether or not to work with the industry, a spokesperson confirmed to Business Insider.

The spokesperson pointed to the changing social climate around marijuana legalization, as 33 states now have laws allowing some form of legal access to marijuana as the reason for reevaluating the policy.

The move comes as the New York City Council passed a bill last week that would bar employers in the city from forcing job applicants - outside of 'safety-sensitive' industries like law enforcement and construction - to take drug tests for marijuana use.

The Citi spokesperson confirmed to Business Insider that while Citi still tests all job applicants for marijuana use, it had been holding conversations around changing the policy for months prior to the New York City Council bill's passing.

The bill is currently awaiting New York City Mayor Bill de Blasio's signature - it will go into effect one year after it's signed into law.

The conversations come as Citi has held talks in recent weeks about how closely it should work with cannabis companies or clients in other industries who want a loan to invest in the marijuana market, as Business Insider previously reported.

The talks, which involved both senior and junior employees, did not result in a firmwide policy.

Citi isn't the only Wall Street bank grappling with issues related to marijuana legalization. As more states legalize cannabis, banks are looking for ways to work with an industry that's projected to reach $75 billion in the US alone by 2030 yet remains federally illegal in the US.

Most banks don't work with the industry over fears of a crackdown under federal money laundering rules, as marijuana is considered a Schedule I drug by the US government. But they are finding ways to learn about the industry where they are able.

Goldman Sachs advised Constellation Brands on its $4 billion investment in Canadian marijuana cultivator Canopy Growth, and Bank of America provided financing to Constellation on the deal.

And JPMorgan provided financing to Altria Group for its purchase of a minority stake in Canadian pot producer Cronos Group in December. Lazard Ltd.'s Canadian subsidiary represented Cronos.

A spokesperson for Goldman Sachs said that the bank's drug screening process for job applicants does not test for marijuana use and declined to comment further. A spokesperson for Morgan Stanley told Business Insider the bank does not test applicants for drug use.

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