As the legal cannabis industry grows state by state, so too does the need for banking services. Financial professionals may be under the false impression that they cannot serve the cannabis industry, but that is simply not true. This false perception is fed by decades of stigma against this plant.
The first step to servicing the cannabis industry is to understand the issues surrounding banking and how they shape your ability to work with this growing sector. These free resources can help you get started as you explore how your company can work with the cannabis industry. Whether you are a banker, entrepreneur, investor or journalist, these accurate and authoritative resources can also serve as a source of education as the industry continues to rapidly evolve and change.
1. Regulatory guidance resources
While cannabis remains federally illegal for the moment, regulatory authorities like the Financial Crimes Enforcement Network (FinCEN) and the Federal Deposit Insurance Corporation (FDIC) have provided a clear roadmap for providing legally compliant banking for state-legal cannabis businesses. At the core of these regulations are anti-money laundering (AML) monitoring, Know Your Customer (KYC), and Enhanced Due Diligence (EDD) protocols.
This means that despite the federal prohibition, the federal government has released guidance to banks to allow them to support the legal state industries that have proliferated since California first legalized medical cannabis in 1996. The myth that banks face consequences for working with cannabis businesses has been busted – it wasn't true then and it isn't true now. This regulatory guidance resource describes in detail how banks should work with state-legal cannabis businesses, providing you with a strong foundational understanding of the true issues at play.
2. Cannabis-friendly bank tracker
There was a time when there were no banks at all serving the legal cannabis industry. While many cannabis entrepreneurs might feel like that's still the case based on their own experiences, as of April 2021, there are nearly 200 cannabis-friendly banks working with some or all sectors of the cannabis industry nationwide. The number of banks working with the legal cannabis industry is growing every day. Keep track with this handy cannabis-friendly bank counter.
3. State by state regulations map
The legal cannabis industry is characterized by a patchwork of regulations that vary considerably from state to state. This fragmented approach to cannabis industry regulation can be difficult to follow, but this state-by-state regulatory and enforcement guide makes it easier to follow. Updated in real-time, this guide was developed in partnership with The Data Initiative, allowing users to compare the laws and regulations in up to three states at a time, check for enforcement actions, build custom reports and review a library of primary source documents from regulatory authorities throughout the country.
4.Cannabis industry newsfeed
Part of operating in the legal cannabis industry is staying on top of a dynamic news cycle that can sometimes move at light speed. This cannabis industry news aggregator pulls in the latest headlines and trending topics from reliable, authoritative sources, selectable by the US, international, banking or legal sector, helping you keep your finger on the pulse of the legal cannabis industry.
If you're curious about working with the cannabis industry, Fincann should be your first stop. Our leadership has spent years working with regulators, financial institutions and cannabis businesses of all shapes and sizes to help educate them on the true issues facing cannabis banking today. With the right information and guidance, you can help legal cannabis businesses compliantly bank their money.