If a public bank were viable, however, it would still need to interface with the federal wire system to move around money — and that, in and of itself, could be an insurmountable feat, explains Joshua Laterman, founder and CEO of a new trade group called the National Association of Cannabis Businesses (NACB), which aims to be a “self-regulatory organization” for the U.S. cannabis industry by requiring its members to collectively develop, agree to, and abide by best business practices — finances included. Laterman previously worked on Wall Street, negotiating with the federal government on behalf of major banks.
Whether such a public bank for cannabis would be a large or small, it’s important for a bank to know where money is coming from before it enters the bank’s own system. There’s a concept in banking called “enhanced due diligence,” Laterman explains, meaning a bank must understand and approve the source of funds before accepting them.
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