So called ancillary companies find that financial institutions across the U.S. have been nearly universally unwilling to knowingly provide bank accounts or financial services to them. Even if these companies are engaged tangentially or even secondarily involved in the legal cannabis industry, financial institutions may drop them because of the perceived risk or general undesirability.
Which B2B ancillary companies are impacted by cannabis banking service issues?
Any company that does not touch the cannabis plant but provides professional services to those who do may have issues accessing stable banking. As a result, those whose apparent business or profession are not obviously cannabis-related have often opted not to disclose their involvement with THC licensees and are hoping to avoid detection by the bank, depending upon the extent of their public profile in the industry. However, even in these instances, banks under pressure from regulators are taking advantage of ever more rigorous software and detection tools now available to more effectively detect and identify unwanted activities.
Some of the service industries impacted by this include:
Any company that does not touch the cannabis plant but provides professional services to those who do may have issues accessing stable banking. As a result, those whose apparent business or profession are not obviously cannabis-related have often opted not to disclose their involvement with THC licensees and are hoping to avoid detection by the bank, depending upon the extent of their public profile in the industry. However, even in these instances, banks under pressure from regulators are taking advantage of ever more rigorous software and detection tools now available to more effectively detect and identify unwanted activities.
Some of the service industries impacted by this include:
|
|
|
|
|
How FINCANN can help
Let’s use an example of a multi-state hydroponics retailer, one of our clients who came to us after exhausting their options to obtain sustainable, compliant banking. Although they were enjoying substantial success in their overall business, they avoided advertising about their affiliation with the cannabis industry, for fear their bank would find out. Plus on numerous occasions, they felt obliged to decline large cash orders from business customers to avoid any ‘red flags’ with their bank. Fincann resolved these issues by introducing them to friendly, compliant bankers that welcomed and partnered with them, eliminating the stress of waiting for the next shoe to drop, as well as releasing the previous marketing restraints so they could publically and transparently engage their business customers via trade shows, in-store promos, educational events and advertising at multiple touch points. The best practice to assure a stable banking relationship in any event would be to at least direct all revenue from licensed marijuana-related businesses (MRBs) into a compliant, transparent bank account. If preferred, the balance of your business could compliantly remain with your current financial institution. |
|
