Even though smoking accessories, agricultural products and industrial equipment do not directly “touch” the cannabis plant, their ancillary affiliation with the marijuana industry can deter banks from taking their deposits or processing their payments altogether.
Although these types of ancillary businesses do not ‘touch the plant’ nor hold a state license, they are still subject to scrutiny. Federal and state agencies have strict requirements to closely monitor deposits made by ancillary businesses. The primary responsibility for this falls on the bank, so if an ancillary accepts payment from a licensee in cash or for more than $10,000, substantial due diligence and ongoing verification of compliance is required. The bank can only accept the deposit(s) after the verification is conducted.
The silver lining here is that costs and fees for ancillaries seeking compliant stable bank accounts are considerably less than for licensees. The primary cost is between a few hundred to a few thousand dollars to complete required due diligence and compliance accounting for each licensed client or customer before accepting their deposit(s). Then, ongoing due diligence and compliance costs are relatively modest.
More than 15 states are represented in FINCANN’s exclusive consortium of transparent, sustainable and compliant banking and merchant processing services willing to take money from smoke shops, greenhouses, and the many other businesses which do not touch cannabis, but somehow facilitate its consumption and distribution. Even if your state isn’t listed here, select partners are willing to work with ancillary product professionals located out of state.
The following states are represented in FINCANN’s consortium:
- New Jersey
- Washington, D.C.,
- Washington State
Once a compliant bank account is established, FINCANN can provide a variety of (now-compliant) electronic (cash-free) payment solutions, including MasterCard, Visa, American Express, Discover & JCB. This includes electronic “wallet” programs and electronic check apps, including shopping cart integration which you can use to accept paymentcompliantly on your website from licensed customers and clients. Reducing the amount of cash you receive will also reduce your compliance and security costs. We’ll work with you to implement the optimal package for your specific circumstances.