Cannabis Industry Banking Progress
Legalization across the country shines light on the existing Cannabis Industry Banking dilemma. Meanwhile, legitimate cannabis companies and the companies they work with struggle to participate in basic banking activities. Since cannabis is still illegal according to the federal government many banks must restrict the services they offer marijuana based businesses.
Massachusetts joined a total of 27 other states this year in the legalization of either medical or recreational marijuana. Consequently, this week Senator Elizabeth Warren is leading a coalition of 9 senators that reached out to the Financial Crimes Enforcement Network. In a note, the senators exemplify that cannabis businesses feel they are alone and solely responsible for their own financial security.
Seems like there needs to be more guidance and assistance for banks that do want to work within the Cannabis Industry Banking sector.
Did you know EvolutionZ can help you navigate the Cannabis Industry Banking system. Stay up to date on progress and get the most out of your dollar.
Most cannabis companies, or companies that work with cannabis companies, are forced to use mainly cash for all transactions. The federal government will not condone banking with businesses that have involvement in the industry.
Getting the government to acknowledge the need for cannabis industry banking services will ultimately help to legitimize cannabis and enable stronger business.
The three main points here are that decreasing cash on hand helps to prevent:
- Tax Fraud
Large amounts of cash obviously make cannabis businesses, storefronts and grows target for crime. Armed robberies have, can and will continue to occur until the amount of cash on hand goes down. As well as the cash seizures and grey areas in tax documentation that will continue.
Do you agree that banks need infrastructure to support cannabis industry banking to help this business become more sustainable?
Check out our cannabis industry accounting services if you want to alleviate stress regarding your cannabis fiances.
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