The term "legacy cash" refers to unbanked money accumulated by a business. In the cannabis industry, many businesses have a large sum of legacy cash on hand due to banking restrictions that left them without banking services.
For quite a long time and still even today, the end of federal cannabis prohibition has stood as a before and after milestone in the industry. Conventional wisdom has been for industry enterprises to tailor their major shareholder liquidity event for the year following prohibition’s end, which could happen as soon as the first half of 2021. The ‘C-level’ talk at trade conferences has been that of tailoring one’s company to be optimally attractive to specific categories of potential buyers […]
Cannabis banking is not about the pros and cons of legalization, potential medical applications, and the myriad challenges faced by an industry struggling to transition from the black market to mainstream acceptance. The most critical and essential issue arising from the lack of banking for the cannabis and hemp industries is actually one of a community safety crisis and not one of the albeit considerable inconveniences and expenses plaguing the industry. The crisis is real, it is severe and it […]
It is understandable and reasonable for many folks especially in the conservative mainstream to remain skeptical of recent claims of medical efficacy and harmless non-consequential recreational use of cannabis aka marijuana given decades of pervasive messaging to the contrary. However it is vital for today’s AML and banking professionals to learn the real truth to take timely advantage of opportunity as well as to ‘nip in the bud’ a looming and severe danger both to our communities and our financial […]
Since it remains undisputedly illegal under Federal law, the state-licensed legal marijuana industry currently primarily operates under a presumption of prosecutorial forbearance and perceived rather than actual risk. The Cole Memo is a ‘feel-good’ U.S. Department of Justice guidance that does not actually restrain local U.S. Attorneys General from enforcement, but sets department priorities with regard to marijuana, such as sales to minors or diversion of product out of state. The Rohrbacher-Blumenauer budget amendment, which prohibits use of federal funds […]