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Cannabis businesses and banking and payments is a real land mine right now. It is still illegal at the Federal level, and the States all have different laws.

Cannabis businesses and banking and payments is a real land mine right now. It is still illegal at the Federal level, and the States all have different laws. What companies are trying to do is ensure transactions don’t potentially cross into a realm where the Feds or a State where cannabis is still illegal could potentially claim jurisdiction and go after the banks / payment companies. Some banks and other financial institutions are trying to court these businesses, but they have to do it with carefully vetted business structures and infrastructure to keep them as legally safe as possible.

chiph 3y ago
Story time: A former coworker's brother got hired in Colorado as a dispensary's first CFO. He soon discovered that employees were making cash pickups every day from their locations using their personal cars - which isn't good for the personal safety of the employees, and way too tempting for theft by the employees. He called a couple of armored car companies - none of which wanted his business. They were concerned over the possibility of mingling his cash with that of other businesses, and the banks (who were their main customers) objecting. Banks, being federally regulated, are not allowed to take deposits from cannabis businesses, even accidentally. So he started a subsidiary armored car business that only served the cannabis market.
- Scubabear68 3y ago
  One of the banks I have worked with have done something similar, they are targeting cannabis businesses entirely through a dedicated subsidiary that is firewalled from the rest of the organization.
- CameronNemo 3y ago
  So he started a subsidiary armored car business that only served the cannabis market. Which promptly went bankrupt when he got repeatedly robbed by the San Bernardino Sheriff's Department. https://abc7.com/fbi-san-bernardino-county-sheriffs-department-new-lawsuit-marijuana-dispensaries/11530204/ https://abc7.com/fbi-san-bernardino-county-sheriffs-departme...

chiph 3y ago

Story time: A former coworker's brother got hired in Colorado as a dispensary's first CFO. He soon discovered that employees were making cash pickups every day from their locations using their personal cars - which isn't good for the personal safety of the employees, and way too tempting for theft by the employees. He called a couple of armored car companies - none of which wanted his business. They were concerned over the possibility of mingling his cash with that of other businesses, and the banks (who were their main customers) objecting. Banks, being federally regulated, are not allowed to take deposits from cannabis businesses, even accidentally. So he started a subsidiary armored car business that only served the cannabis market.

Scubabear68 3y ago
One of the banks I have worked with have done something similar, they are targeting cannabis businesses entirely through a dedicated subsidiary that is firewalled from the rest of the organization.
CameronNemo 3y ago
So he started a subsidiary armored car business that only served the cannabis market. Which promptly went bankrupt when he got repeatedly robbed by the San Bernardino Sheriff's Department. https://abc7.com/fbi-san-bernardino-county-sheriffs-department-new-lawsuit-marijuana-dispensaries/11530204/ https://abc7.com/fbi-san-bernardino-county-sheriffs-departme...