Cannabis Banking - Or lack there of...
I’ve been watching the Cannabis Banking Working Group speaking in front of the CA state Treasurer, and it’s depressing to hear what these cannabis companies are going through. Imagine being afraid every night you close your dispensary because you’re driving home with thousands of dollars of cash on you? Imagine having to check your rear-view mirror, hoping no one suspicious is following you? It’s a well-known fact that these stores operate in cash, how many people have been robbed/shot because of that? What I find most ridiculous of all of this is it that the state governments can deposit the taxes from cannabis into their bank account, but dispensaries and other cannabis companies can’t! I truly look forward to the day we are able to look back at these times and laugh at the sheer absurdity of banks denying BILLIONS of dollars out of fear of the federal government... The same federal government that BAILED THE BANKS OUT when their mortgage backed securities destroyed Middle America. Weren't they "too big to fail"? What are they really worried about?
Getting things done right the first time for clients and partners through the skillful use of my OCD ;)
8 年At the moment, there are two factors in banking that are applicable. First is Cole, next is FinCEN. You can be compliant with Cole all day long, but with FinCEN required reporting on Marijuana Limited, Terminations, and Red Flags, most banks are wary of taking on the business. Failure to report FinCEN results in fines and lots more for banks or credit unions who rely on ABA and SWIFT to move money around. I've been in high risk processing since 1999, and there are a lot of people with stories that don't quite match up with reality in banking as it pertains to cannabis related businesses.
CEO The Value Company | Principal @ DG.C | fitness ? wellness ? healthcare x fintech
8 年Again.,, another great article ...truth be told!! Thank you Kristin! We obviously can't depend on the .gov to handle this issue ...
Hiring American Growers to Train International Growers
8 年Kristen.. I rarely tell people how I found out my bank account was closed. Here's the story: I had started Parker Pots with a rather large deposit to the bank. We spent four months spending that money. We get our first big order and I deposit a 50k check. I call my entire team and we go to Morton's Steak house in Vegas. We eat, drink and are quite merry. Time to go home and I whip out my fancy credit card. Its so pretty, with 50k sitting behind it. Declined. What? There's 50k in that account!! Please try it again. Declined. I call the bank. I am told that my bank account was being closed due to "suspicious activity." I am outraged. When I ask what was the suspicious activity that caused them to close my account, I am stunned silent for a few moments. I have the ability to speak in multiple languages and begin the next few sentences discussing how the bank could begin having sexual relations with family members, starting with their mothers. "Your account was closed due to the suspicious check that you deposited for pot." "I sell pots" "That's not legal, so we have closed your account and seized your funds. If you have further questions, please contact our legal department" I have a 4k bill from the "celebration" dinner. Before the check came, we hadn't been able to make rent on the building. Thankfully, the steak house cut the bill in half, as the manager overheard the conversation. In Vegas you can be arrested for not paying a debt. (Imagine that!), so they gave me 24 hours before pressing charges. I had to pawn my big screen TV's and all my tools to pay the bill. Never got my 50k back. Now when people tell me they have a bank, I give them my name and my company address. I tell them.. you really need to have banking redundancy. If you choose not to do that, call me when your bank closes your account. If you want to protect yourself from EVER getting closed, call me today. None of my customers have ever had their FDIC insured bank accounts closed. *shrug* I always get calls.
Intractable Pain Patient/Patient Advocate/Legislative Outreach
8 年Prior to cannabis, I dabbled in default outsourcing. Kristin is correct. HSBC, Wells, BOA and the others INDIRECTLY already bank cannabis dollars daily and the FEDS aren't doing squat about it either. It's MILLIONS of dollars. Our company, FattSacs, Solvent Free Cannabis Concentrates almost eliminates the company from banking with the name alone. Alfred Jordan you care to comment?