Financial institutions that bank cannabis companies can benefit in several ways from doing so: revenue growth, market diversification and potential long-term partnerships are just some of these advantages; but financial institutions must remain vigilant against myths detracting from the full value of their ventures.
In 2023, dispensaries that accepted debit cards earned 59% more than those that didn’t. Stay informed on the cannabis industry with our weekly newsletter The Dose!
The Global Legalization of Marijuana
As the marijuana industry expands rapidly, banks must overcome any apprehension related to banking cannabis related businesses (CRB). This is especially crucial given that their criminalisation disproportionately harms disadvantaged and minority groups. CRB business owners need access to loans and capital; additionally they require cashless ATMs, credit card processing solutions and merchant solutions that enable them to track revenue, taxation reporting, profit management as well as pay employees effectively.
This webinar is intended to assist financial institutions in understanding the risks and rewards associated with entering this sector, along with any changes or updates regarding compliance requirements. Furthermore, innovative technology may help streamline operations while increasing security while elevating customer experiences.
The Global Legalization of Medical Marijuana
With Netherlands consumers legally purchasing their first recreational cannabis and Germany making steps toward becoming the world’s largest regulated national market for this substance, marijuana reform is occurring globally. But how will these changes impact consumption and use of this drug? Our research seeks to answer this question through its unique multi-country approach.
Politicians and businesses around the globe are quickly moving to legalize cannabis due to increased consumer demand, with potential implications for financial institutions being immense.
However, cannabis companies still encounter significant roadblocks that impede their expansion. One significant barrier is limited access to banking services; without bank accounts in place, cannabis businesses operate cash-only environments which pose considerable legal and security risks. Cannabis companies looking to expand internationally or into new markets face unique obstacles when doing so, yet there is hope: solutions exist. FinCEN recently issued guidance to assist banks, credit unions and other financial institutions better understand their BSA obligations and best practices for providing payment processing to cannabis-related businesses and service providers.
The Global Legalization of Recreational Marijuana
As marijuana has been de-stigmatized and legalization spreads state-by-state, more banks are opening accounts to serve this emerging market. While banks have overcome any aversion they had toward working with marijuana-related businesses that don’t touch plants themselves (Tier 2 and Tier 3 businesses) but still face possible federal prosecution if they do so.
Without access to banking services, MRBs must operate exclusively using cash transactions, which expose them to security risks at every turn. Furthermore, their inability to secure mortgages or loans impedes growth while depriving employees of income and thus harming the community as a whole.
Experts will share insights into navigating the nuances of cannabis banking risk and building relationships that thrive despite federal prohibitions. You’ll gain an in-depth knowledge of rescheduling process and how it may open new paths of growth – leaving this webinar with tools necessary for success in this ever-evolving industry.
The Global Legalization of Commercial Marijuana
Beird asserts that the industry requires a banking system capable of supporting revenue tracking, tax reporting, profit management and employee pay for CRBs. Federally chartered banks continue to avoid working with CRBs; however, state-chartered institutions and local credit unions may step up to meet this need while fintech solutions such as Dutchie Pay, Primo Payments and Mobius Pay offer solutions which can handle card-based transactions.
She notes that money laundering remains one of the biggest obstacles. CRBs must know they will need to file Suspicious Activity Reports on cash deposits from their cannabis operations – even when these deposits don’t directly relate to marijuana sales.
As the legal landscape for cannabis continues to shift, understanding how banks and credit unions can best service this industry has become ever more crucial for bank and credit union employees. To address this need, Infused Banking is offering a webinar for financial services professionals covering compliance guidelines, challenges and best practices within this space – register today – you won’t want to miss it!