The new rules for the banking industry are allowing more banks to work with marijuana businesses. The bank must create a report specifically for marijuana companies. The marijuana limited report will identify the type of business relationship. In the future, more banks will be able to work with marijuana businesses. Until then, the biggest hurdle for cannabis businesses is finding a willing institution to work with. There are a few reasons for this, and it’s important to choose carefully.
One problem is the lack of regulation. The U.S. Department of Treasury requires banks to carry out due diligence on cannabis-related businesses. They also must state in their SARs that they have no red flags or concerns with the companies they do business with. While this may be a helpful measure, it is not a foolproof solution. Some banks are still wary of marijuana-related businesses, and this guidance will not shield them from fines and prosecution.
While more banks are opening up to the cannabis industry, there are big risks. Even without any banking, cannabis businesses still face big safety risks. In 2012, a dispensary owner in Orange County, California, was kidnapped and robbed of all his money. Authorities mistakenly believed he was hiding his cash in the desert. That’s not uncommon in the marijuana industry.
The SAFE Banking Act will give more banks the freedom to work with cannabis businesses, while limiting the scope of their operations. The new law is not yet in place, but it could make banking for cannabis businesses easier. In the meantime, a working group of financial institutions is focusing on finding a solution for the industry’s banking problems. The executive director of the California Growers Association, Hezekiah Allen, says that his organization has a solution to the problem. The group is interested in creating a “bankers bank” for cannabis businesses. A bankers bank would screen the businesses for compliance, and those companies that pass the test could open an account with any of the dozen banks.
Some banks have no problem working with cannabis businesses. However, the federal banking ban does not make it illegal for them to work with cannabis businesses. The new laws, if passed, will give the industry more freedom and certainty. They’ll be much more open to the industry, which is what the US government is after. If the state passes the legislation, more banks will be more willing to do business with them.
The new law is designed to limit federal bank penalties for banks that do business with marijuana. The SAFE Banking Act was approved in committee in March by a bipartisan congressional committee that was led by marijuana news the marijuana lobby. A few banks have already acted in this manner. Further, a few smaller banks have entered the cannabis banking industry, while others are waiting for more serious regulations to be passed.
While federal banking laws have largely protected marijuana businesses from federal prosecution, a new bill passed by the U.S. House of Representatives in February allows banks to work with marijuana businesses. Analysts say the bill removes the barrier to the national cannabis industry. The new law requires banks to monitor and report on their cannabis business activities, which is a requirement for doing business in the industry.
As the cannabis industry grows in popularity, banks are starting to open accounts for marijuana businesses. The Financial Crimes Enforcement Network, which issues memos to all U.S. attorneys, has published a memo that states that they autoflowering cannabis seeds should be willing to work with marijuana businesses. These federal actions are meant to protect the interests of both banks and the industry. A legal system is an essential component to the success of the legal cannabis industry.
A recent memo from the U.S. Treasury Department states that the SAFE Banking Act will protect the financial interests of marijuana businesses. It is an important step toward a safer financial system for the industry, and it is important to note that the Department of Justice has also withdrawn protections for marijuana companies. It’s worth noting that the department’s move focuses on interstate trafficking and sales to minors.