New data released by the Treasury Department’s Financial Crimes Enforcement Network shows that more banks are welcoming marijuana businesses. Since 2014, the number of institutions that welcome this sector of the economy has tripled. However, a small fraction of the country’s federally insured banks still does not serve the industry. It is likely that this situation will persist as long as the government prohibits the use of cannabis for recreational purposes.
For many cannabis businesses, finding a bank that welcomes this industry has been a challenge. The industry is classified as Schedule I by the federal government, and financial institutions do not want to risk running afoul of these laws. The industry also faces many legal and compliance risks. While there are many advantages, establishing a bank account with a friendly marijuana business can be complex.
As a result, many marijuana businesses are forced to run on cash and money orders to pay their employees. Some even have to hide their cash in moist earth. Luckily, there is a solution: a cashless ATM. These machines, called reverse ATMs, are marketed to a specific category of merchants that are unable to obtain traditional payment services.
While the industry faces many challenges, the industry has already established precedents and regulatory guidelines that are guiding its development. With more than 700 banks in the United States, this is a very welcome sign. While financial institutions may still be reluctant to deal with the cannabis industry, they should be encouraged to open their doors to these businesses. With the legalization of cannabis in the United States, more banks are making it easier to provide the services needed by these businesses.
Despite the growing legalization of cannabis, there have been reports of bank account closures for cannabis businesses. This fall, Umpqua Bank closed Greenbridge Corporate Counsel’s account because it refused to hand over client information. Although the federal government has hinted at a crackdown, the data shows that more banks are welcoming cannabis businesses. It is a sign that more people are willing to accept legal marijuana as a legal substance and are more open to banking with financial institutions.
Despite the Trump administration’s contradictory messages on marijuana legalization, more banks are opening their doors to these businesses. The number of depository institutions that support marijuana business has increased by 18%. In January, there were just 340 depository institutions banking marijuana businesses. By September, there were four hundred and forty. These are the most encouraging signs for the legalization of cannabis.
A new report released by the federal government finds that more banks are embracing the marijuana industry. The new study also highlights the importance of regulating the cannabis industry, which is already cannabis seeds maine a highly controversial part of American society. Currently, the marijuana industry is still illegal in the U.S., which has left it in an ambiguous position with regards to the legalization of the drug.
The data shows that more banks are welcoming marijuana businesses, despite the current conflicting signals coming from the Trump administration. The report further indicates that marijuana businesses are a major part of the local economy. Nevertheless, they remain vulnerable to criminals and other illegal activity. Without a bank, they are in danger of being robbed. And, while it is unclear if the Trump administration will allow cannabis businesses to access banks in the U.S., they should consider this in 2015.
Despite federal government statements that marijuana businesses are not a legal commodity, the industry continues to grow. Currently, banking access to basic services for cannabis businesses is problematic. Most owners are forced to operate on cash only. This can make them a target for robbery. Several members of Congress have proposed legislative solutions to this problem. Interestingly, both the House and Senate have passed bills addressing the issue.