How the banks are hindering the cannabis industry

Sep 04, 17 How the banks are hindering the cannabis industry

Federally speaking, cannabis is not yet legal, in many states this is not the case but in terms of the country as a whole it is an unfortunate truth. If this did not provide enough problems for fledgling cannabis businesses, then I’m sure the reluctance of banks to hold accounts for cannabusiness is really just the icing on the cake so to speak. In lieu of the number of propositions from a number of different states across the country which have seen the legalisation of cannabis it would be expected that the banks would soften and open up to the idea of providing their services for the burgeoning industry.

With little to no banking services available to businesses in the marijuana industry, this does not provide the best circumstances under which to start up a new business. Unfortunately these are the circumstances which many in the cannabis industry find themselves in, some have predicted that the value of the cannabis industry may soon reach between $4 billion and $7 billion, yet not having access to proper banking in a country that operates on a cash and credit system is a huge hindrance. Many banks are avoiding marijuana as it is still illegal on a federal level, this may mean that banks incur extra, additional costs as a result of suspicious activity reports and the like.

This has resulted in many cannabis businesses being cash-only which has led to them essentially being targets for robberies. Naturally this has resulted in law-enforcement having to spend money helping those who have been negatively impacted by the bank’s decision not to hold accounts for these businesses.

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