Cannabis Businesses Continue to Struggle with Banking Issues

JEAN-GABRIEL FERNANDEZ | June 18, 2019

article image
Even in states where it is legal the possession, distribution or sale of marijuana remains illegal under federal law which means any contact with money that can be traced back to state marijuana operations could be considered money laundering and expose a bank to significant legal operational and regulatory risk the American Bankers Association explains. Banks can be held liable if they hold money that was illegally obtained, and as selling cannabis is still considered a federal crime cannabis businesses is a liability for banks. Cannabis growers and retailers can and often are denied the right to open a bank account, but they are not the only ones. Landlords, employees, service providers, as well as anyone indirectly tied to any kind of cannabis business can potentially be denied service. The rift between federal and state law has left banks trapped between their mission to serve the financial needs of their local communities and the threat of federal enforcement action,” the American Bankers Association adds.

Spotlight

Insurance Auto Auctions

Founded in 1982, Insurance Auto Auctions (IAA), the leading live and live-online salvage vehicle auction company, is headquartered in Westchester, IL and employs over 2,800 employees in more than 170 auction facilities throughout the U.S. and Canada.

OTHER ARTICLES

4 Benefits to Becoming Digital and Data-Driven in Financial Services

Article | February 18, 2020

Make no mistake: the current explosion of volume in data coupled with the emergence of new tools and processes on the public internet has created a near-perfect storm when it comes to generating opportunities for the enterprise. In addition to the creation of all new forms of business – think of Netflix and Uber – the abundance of expansive data that can be utilized in cost-efficient applications can also drive insight and innovation in previously unimaginable ways.

Read More

Building Towards a Sustainable Future

Article | July 29, 2020

Over the past few months, in the midst of our global health crisis, some have questioned the connection between sustainability and the broader issues weighing on our society. But if we take one lesson away from these intersecting crises, as our CEO Mike Corbat has said – it is that our physical and economic health, our sustainability and resiliency, and social justice are inextricably linked.

Read More

Why Payments-as-a-Service is the first choice for FIs

Article | February 11, 2020

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

Read More

FinTech in Post-Covid 19 World

Article | April 7, 2020

FinTech industry has 2008 crisis to thank for its tectonic rise. A number of ingredients (e.g. cheap funding, mistrust for banks, availability of ex banking talent, etc) came together that turned last recession into a platform for the launch of a wave of FinTech innovations. Since FinTech was almost born out of the last crisis, it is only natural to wonder how Corona Virus-induced crisis will reshape FinTech.

Read More

Spotlight

Insurance Auto Auctions

Founded in 1982, Insurance Auto Auctions (IAA), the leading live and live-online salvage vehicle auction company, is headquartered in Westchester, IL and employs over 2,800 employees in more than 170 auction facilities throughout the U.S. and Canada.

Events