Not sure if it is banned in all forms but this from WikiPedia
Tobacco was introduced to Europe in 1559, and by the late 17th century, it was used not only for smoking but also as an insecticide. After World War II, over 2,500 tons of nicotine insecticide (waste from the tobacco industry) were used worldwide, but by the 1980s the use of nicotine insecticide had declined below 200 tons. This was due to the availability of other insecticides that are cheaper and less harmful to mammals.[6]
Currently, nicotine, even in the form of tobacco dust, is prohibited as a pesticide for organic farming in the United States.[63][64]
In 2008, the EPA received a request, from the registrant, to cancel the registration of the last nicotine pesticide registered in the United States.[65] This request was granted, and since 1 January 2014, this pesticide has not been available for sale.[66]