While it is now possible to sell legal marijuana in most American States, most banks are still reluctant about cashing weed money. In fact, a lot of marijuana businesses have recently woken up to the shock of their accounts being shut down when banks discover the nature of their business. So the big question is: how do you run a successful marijuana business without a financial account?
Marijuana banking is not a new term in the cannabis circles. It is a jargon used by legal pot dealers who liaise with banks to help keep track of their money. However, the problem is that several American banks are still averse about the green banking idea. To them, the risk of venturing into the marijuana banking business seems to have more disadvantages than advantages.
For starters, most American banks are skeptical of the whole cannabis banking idea because of the possibility of being incriminated by Federal Laws. Because there is still a fine line between legal and illegal marijuana, banks believe that it may not be easy to know if a weed business is running legitimate. Therefore, whenever there is a drug burst, many banks fear that they may also be held as accomplices to the crime.
Another fear is when a new administration comes into place and has a different policy on legal marijuana business. For Instance, Trump recently gave his stand on legal marijuana, though his statement was met with mixed feelings. In the recent bill he signed to fund the Federal Government, Trump assured that part of the funds will not be used to carry out drug bursts on legal pot. However, those who smoke weed for recreation will have a much harder time with the Feds. In addition, weed activists say that the measure put in place by the Trump government is a temporary one. After the end of the fiscal year, a new budget will be announced which may allocate funds for drug bursts.
Some Light at the End of the Tunnel
Nonetheless, there is a bank in Florida that is going against the grain. This is the first GREEN Bank that is supporting legal marijuana business. It solves the big problem of pot business owners not being able to find a bank that comply with the Federal Laws on weed.
There is more good news: many banks are buying into the idea of funding marijuana related businesses (MRBs). The Federal Government only requires these banks to take a few precautions. MRB financing banks have to monitor every account owned by a marijuana business for any suspicious activities. Any dubious dealing by the account holder and the bank will be prompted to file a Suspicious Activity Report (or SAR) to the respective federal regulators.
Marijuana banking is yet to be streamlined as the Federal Government is yet to be clear on where it stands on the whole issue. Though more banks have bought the idea of MRBs, there are still a few financial institutions that shy away because of the unclear Federal Laws. All President Trump has to do is to give his word that he will never bother pot sellers, and legal marijuana businesses will thrive better financially.