Cannabis Payment Processing Current Laws

Federally speaking, cannabis is still part of the Controlled Substances Act, so major banks that often will provide easily accessible financial support and loans, will not themselves available to any businesses related to marijuana, CBD oil or hemp products, especially if they are a federally regulated institution they, “won’t process payments for businesses participating in federally prohibited activities”, which of course includes cannabis, CBD oil, or hemp products.

If a bank opens its doors to anyone in the cannabis industry, even a company legal on the state level, these institutions put themselves at risk of being seized by the Federal Deposit Insurance Corporation (FDIC), and many of these well-known, financially supportive institutions simply do not want to take the risk.

Independent, smaller banks seem to be more flexible and willing to cooperate with those related to the legal cannabis market, with some small institutions in Colorado even specifically seeking to support the marijuana vendors within the state, because of the opportunity for both making money, and also assisting the local economy.

Technically speaking, although many financial institutions are terrified of getting involved with cannabis, in 2014 the Financial Crimes Enforcement Network claimed that banks were actually authorized to service and support businesses with ties to cannabis, so long as they comply fully with anti-money laundering regulations.

So, technically speaking it is legal for a bank to support a legal marijuana business, as long as they, the financial institution take the necessary steps and regulations into account, but many banks simply choose not to because, for them, it is not worth the risk of the Federal Government getting involved.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s