Cannabis Banking Issues: All Cash and No Flash
By Steve Schain. Ever accidentally find $7.2 billion of cash in your back pocket?
The cannabis industry did in 2017, after virtually no bank would accept legalized marijuana sales deposits. Due to difficulty in obtaining financial services and because marijuana is a “cash only” business, marijuana related businesses (MRBs) face staggering safety, security and operational issues.
As a result, licensed and regulatory compliant MRBs are sitting on mountains of cash, while, in light of unclear legal exposure, immeasurable risk management, and nearly impossible regulatory compliance, hungry banks view accepting cannabis cash as insufficiently lucrative to pursue.