Even so-called “ancillary” companies, which do not require a cannabis-specific license nor touch the plant, find that financial institutions across the U.S. have been nearly universally unwilling to knowingly provide bank accounts or services to these companies. Even if these companies are engaged tangentially or even secondarily involved in the legal cannabis industry, financial institutions may drop them because of the perceived risk.
As a result, those whose apparent business or profession is not cannabis-related have often opted not to disclose their involvement with licensees and are likely to avoid detection by the bank, depending upon the extent of their public profile in the industry. However, even in these instances, banks under pressure from regulators are taking advantage of ever more rigorous software and detection tools now available to more effectively detect and identify this unwanted activity.
The best practice to assure a stable banking relationship in any event would be to direct all revenue from licensed marijuana-related businesses (MRBs) into a compliant, transparent bank account. If preferred, the balance of your business could compliantly remain with your current financial institution.
Given the currently limited bandwidth of ‘cannabis-friendly’ financial institutions, and the likelihood that full disclosure may result in account closings, limited transparency and risk mitigation may be the most practical short-term strategy. However, if your licensed clients wish to pay for goods and services with cash (especially large sums of cash), the “red flags” raised at your bank may mandate moving at least that portion of your business to one of our compliant, cannabis-friendly institutions.
FINCANN’s exclusive consortium of transparent and sustainable banking and merchant processing services are present in 17 states across the U.S.: Alaska, Arizona, Arkansas,California, Colorado, Florida, Louisiana, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, Washington, D.C., and Washington State. If your state is not listed here, we may still be able to help you: we’ll connect your business with the institutions in the consortium open to working with out-of-state businesses.
Once your bank account is open, FINCANN can provide a variety of compliant, cash-free electronic payment solutions, including:
- Processing for MasterCard, Visa, American Express, Discover, and JCB
- Electronic wallet programs
- Electronic check apps
- Shopping cart integration