What Banking Issues Do Cannabis Business Face?


The long-term stability of a marijuana-related business (MRBs) is directly proportional to the quality and transparency of its compliance. As essential stewards of commerce, banking and related financial services are the first line of defense in maintaining that compliance. However, many marijuana-related businesses find themselves in a predicament where they cannot be honest with their financial institutions, resulting in strained banking relationships and financial services which could be dropped at any time. Compounding the problem, most industry-friendly financial institutions won’t publicly advertise their willingness to work with an MRB.

Cannabis businesses have always faced significant obstacles obtaining and retaining banking and merchant processing services. However, banking in the cannabis industry is a perceived risk, not an actual or practical one, and that fact makes all the difference. This perceived risk is largely based on misinformation or a deliberate lack of information, as well as the ingrained prejudice against cannabis.

When it comes to cannabis, U.S.-based financial institutions are reluctant to acknowledge their role in the financial system as essential stewards of commerce. Banks and merchant processors are nearly universally unwilling to open accounts or provide basic banking service to MRBs or the ancillary businesses which provide services to them. While many profess to fear losing accreditation or FDIC status from the federal government, the reality is that no financial institution that is or has made a reasonable effort to compliantly bank the industry has suffered such consequences as a result. On the other hand, a cash-only business opens up the opportunity for tax evasion and other financial crimes, making it the interest of the federal government for banks to conduct business with MRBs.

For the most part, most MRBs and ancillary services are either forced to operate entirely in cash or seek a covert checking account that risks being interpreted as fraudulent. Others are forced to rely on cashless ATMs or electronic wallet workarounds or under an innocuous guise, such as a flower shop or a management company. All of these businesses anticipate account closures and need to go through the exhausting process of closing and opening new accounts several times a year.

The Fincann Cannabis Banking Solution


Fincann’s Cannabis Banking Financial Network™ bypasses the issues presented in cannabis banking by providing access to a consortium of U.S.-based institutions willing to conduct business with MRBs. This exclusive consortium has done the legwork for you, building strong relationships with these federally-insured banks.

With roughly 25,000 licensed and ancillary enterprises across the United States in need of banking and merchant processing services, Fincann’s exclusive consortium is growing every day. See if you qualify now to open your own compliant, transparent, and sustainable cannabis business checking or merchant processing account!

Open An Account

What are the requirements to open a cannabis business bank account through Fincann?


Fincann is in full compliance with the guidelines of federal and state examiners, as well as the U.S. Departments of Justice and Treasury (FinCen). These guidelines require financial institutions to undertake rigorous and effective measures to assure several important benchmarks for MRBs, including:
  • The beneficial owners and principals of the business have clean records
  • The business is properly licensed and compliant with all reporting and operational requirements of their licensing authority
  • The business is operating in substantial compliance with Cole Memo priorities
  • The business engages in effective and reporting and operational protocols and procedures
  • The business strictly adheres to such protocols to prevent the co-mingling of any funds derived outside the scope of their licensed operations
  • For plant-touching businesses, the plant-derived inventory must be fully tracked and accounted for to prevent diversion
Plant-touching and ancillary businesses both face the same requirements, although ancillary enterprises, including professional service providers’ requirements are generally less intensive and rigorous.

What to expect when applying for a cannabis banking account through Fincann


When applying for a compliant bank account, be prepared to undergo a rigorous process of due diligence and reporting, including a mandatory on-site compliance inspection of all THC-licensed facilities. As a CBD-related company, be prepared for the possibility of a required physical site visit. The process generally requires:

  • Pre-qualification business profile
  • Fincann client engagement and one-time advisory fee
  • Introduction to best match financial institution(s)
  • Application, supporting documents, due diligence, site survey and bank application fee (where applicable)
  • Minimum opening deposit (where applicable)
  • Sector-specific monthly account maintenance and deposit processing fees (where applicable)

Ready for your cannabis banking or merchant processing account?


Fill out your pre-qualification business profile online today, and in just a few weeks, you’ll have a transparent, sustainable, and compliant banking or merchant processing account for your marijuana-related business.

See If You Qualify Contact Fincann
Call us : (212) 724-7777