Federal statutes create risk for banks that want to operate in the cannabis space. Banks face the threat of civil actions, asset forfeiture, reputational risk, and even criminal penalties if they do business with customers in the cannabis industry. Further, because most banks will not touch cannabis money, the growers, processors, and retailers in the industry must often operate on a cash-only basis. The Internal Revenue Service has even had to build “cash rooms” to accommodate taxes paid by legal cannabis companies.
Congress Can Open Financial Institutions to Legal Cannabis Industry with SAFE Banking Act
By Anthony DeMaio and Robert M. Kline on April 26, 2019
Posted In Cannabis, General Interest