My answer to What are the most pressing financial/banking challenges faced by legal cannabis companies today?
Answer by Raad Ahmed:
Cannabis companies are in a bit of a challenging area of law and banking simply because in some states it’s legal, but it still remains illegal on the federal level. Because banks are governed by federal law, many are restricted from lending or even taking marijuana money simply because it can equate to money laundering. Because there is some fear of getting caught up on the wrong side of the law, most big banks won’t even consider working with a cannabis company.
Since the U.S. Treasury and Department of Justice have vocalized that they will not go after banks that monitor the financial activity closely, some smaller banks are opening up to the idea of working with cannabis companies. It still appears that bigger banks see it as too much of a risk.
Your best bet is to secure banking in the earliest days of development. It may even influence where you decide to position your business.
is happy to connect you with a cannabis attorney. They can counsel you on various aspects of the business and help you create a plan. Our rates are affordable and we offer flexible scheduling. Take a look at our website to learn more.