Sourced through Scoop.it from: www.herb.co
Banking institutions looking to work with cannabis dispensaries may soon find it easier to do so, as increasing numbers of banks and credit unions have shown willingness to handle the money made through cannabis sales and cultivation.
According to federal data, the number of financial institutions nationwide who have shown a willingness to handle money made through cannabis has increased from 51 in March 2014 to 301 in March of this year.
The major obstacle to financial institutions dealing with cannabis businesses has been the federal prohibition on cannabis. Because of the current ban, cannabis businesses – even those in states that have legalized the recreational cannabis use – have been forced to deal almost exclusively in cash.
This is due to the fears on the part of credit card companies of liability for such offenses of money laundering.
As a result, many cannabis dispensaries have been forced to conduct all of their transactions in cash; indeed, a survey conducted in December 2015 by Marijuana Business Daily found 60% of cannabis-related companies do not even have a bank account.
As a result, many cannabis businesses have invested in security apparatuses. The lack of federal guidance on the issue has resulted in great consternation among industry insiders.