Cannabis and Financial Institutions: Providing Financial Services to Cannabis-Related Businesses
While providing financial services to cannabis-related businesses (CRBs) can be risky, it can also be advantageous. There is a substantial need for financial services by the cannabis industry, and there is a significant opportunity for banks and credit unions who choose to work with CRBs. It requires financial institutions to understand the industry’s nuances, closely monitor ongoing guidance and regulation changes, adequately safeguard the institution, and train staff accordingly. Even if cannabis is not legal in the financial institution’s state, customers in neighboring states still pose a risk. As more states continue legalizing cannabis, the onus is on financial institutions to complete thorough due diligence and know the members that cross state lines for services.
Ultimately, it is at the discretion of each financial institution on how they want to handle banking these businesses, knowing the state and federal laws. Understand the risks and learn how to stay compliant while banking CRBs.
Download this whitepaper to learn:
- Distinctions between the terms cannabis, marijuana, and hemp
- Six key areas related to CRBs to consider in your risk assessments
- How to stay compliant, should your financial institution decide to engage in relationships with CRBs
Providing financial services to cannabis-related businesses can feel like navigating through a haze of constantly changing regulations. View on our-demand webinar, Navigating Regulatory Haze: Banking Cannabis-Related Businesses and Managing Risk for additional insight on how to manage regulatory compliance and maintain a risk-based program.