Cannabis and Credit Unions: A Guide to Providing Financial Services to Cannabis-Related Businesses
The cannabis industry has grown rapidly in recent years, and demand is expected to continue increasing following cannabis legalization initiatives. According to an updated report following the 2020 election by New Frontier Data, the cannabis market is projected to double to $41.5B by 2025. Although cannabis is now legal – either medically or recreationally – in the majority of states today, it remains illegal on a federal level, hamstringing cannabis-related businesses (CRBs) from accessing traditional financial accounts. As this industry continues its rapid expansion, it is increasingly important that it has access to traditional banking services. While there is certainly demand for these services, credit unions are, understandably, skeptical. How do you bank cannabis-related businesses and navigate compliance?
While providing financial services to CRBs can be risky, it can also be highly rewarding, especially for credit unions. As more states continue legalizing cannabis, the onus is on credit unions
to complete thorough due diligence and know the members that cross state lines for services.
Download this whitepaper to learn:
- Nuances of the cannabis industry and ongoing regulatory changes
- Opportunities for credit unions banking CRBs
- Necessary steps to remain compliant if a credit union decides that it wants to engage relationships with CRBs
Interested in learning more about proactive measures your credit union can take to reduce risk, protect your members, and manage priorities? Register for our webinar Top Priorities for Credit Unions in 2021 and Beyond.