Public companies and multi-state licensed operators (MSOs) present unique challenges in obtaining compliant, transparent, sustainable commercial bank accounts. This includes companies with hybrid corporate structures, including less-than-wholly-owned interests in other operating entities (licensed and otherwise).
Much of this is due to a prevailing policy among many cannabis-friendly financial institutions to limit accounts to those operating within their specific state or region. Some also have policies restricting public entities as customers due to difficulties in conducting adequate due diligence and achieving adequate compliance with regard to invested capital and/or beneficial owners. Also, public companies may trigger additional federal compliance requirements and SEC scrutiny that banks, especially those relatively new to compliant cannabis banking, are reluctant to undertake at this time.
If you are a public company, multi-state operator or conduct cross-border transactions, please also refer to our applicable industry sector section pertaining to your vertical(s) for detailed information: