banking marijuana industry bank
Marijuana Business News

Another Bank Is Changing Course, Won’t Work With The Marijuana Industry

banking marijuana industry bankFederal guidelines on marijuana banking are far from clear, and create more questions than answers. That is proven by the fact that so few banks will work with marijuana businesses, even though it’s legal to do so now under strict scenarios. The guidelines are so strict and burdensome that even banks that are willing to work with marijuana businesses on principle still refuse to do so because it’s more effort and trouble than it’s worth. Yet another bank is ceasing operations for marijuana businesses. Per Marijuana Business Daily:

First Security Bank of Nevada, which began working with the nascent medical marijuana industry in the state last year, has decided to reverse course because of compliance issues, its chairman told Marijuana Business Daily Friday morning.

“The board has decided to (essentially) exit the marijuana industry,” said Jason Awad, the chairman of the board of First Security. “We have attempted, at a huge cost of time, to implement a robust compliance program… We found out that the compliance issue is so costly that it’s going to be prohibitive.”

The move comes at perhaps the worst possible time: Licensed cannabis dispensaries in Nevada are just now gearing up to open, possibly in the coming weeks. This development could delay many of these businesses and present new hurdles for the state’s emerging MMJ industry.

The stance that First Security Bank of Nevada has taken is a similar one that other banks who have worked with the industry for a time have taken. The federal guidelines for marijuana banking are simply unworkable. Are there scenarios where the guidelines allow for marijuana business banking? Sure. But are they realistic guidelines? I don’t think so, and for proof of that, I offer up every banking company that has pulled away from the industry citing the reason for a change in policy being that being in compliance is too expensive. It’s beyond time for true federal marijuana banking reform.

marijuana business daily conference expo

  • SilentPatriot

    I wonder if they’re okay with doing business with the brothels there. Oh, wait.

  • jason

    I’m just waiting for the first wrongful death suit to get raised either against a state or the US..when one of these dispensaries workers/owners gets killed for all the cash they have to transport..I know there are security firms thriving now, transporting the cash etc..but not all of the folks in the industry choose to use an armed security force to transport their cash, even if they should, they shouldn’t have to is the point. The US and these state governments are on borrowed time….it’s only a matter of time before something bad happens and they are gonna get sued because they won’t fix this banking issue…

    What’s it going to take US government?? is a kid gonna have to get killed in a crossfire or a stray bullet before you guys take your ignorant heads out of the damn sand and fix the banking issue….

    I find it astonishingly ridiculous that the IRS is right there in line to take these businesses money, yet the banking industry can’t get involved because the same government won’t get of their collective asses!!

    • newageblues

      “Is a kid gonna have to get killed in a crossfire or a stray bullet before you guys take your ignorant heads out of the damn sand and fix the banking issue.”

      Sure looks like it. Some poor soul will.

      “I find it astonishingly ridiculous that the IRS is right there in line to take these businesses money”

      To take ALL their money, because the IRS won’t allow marijuana businesses to take normal business deductions.

      The fascist warmongers just won’t stop fucking with cannabis…

    • Lawrence Goodwin

      I’d say a majority of lawmakers are not “ignorant” about cannabis, jason, but simply doing their part to uphold the Anti-Marihuana Tyranny. Most banking problems in the industry emanate from the Schedule I status of “marihuana” in the Controlled Substances Act. For 44 years, some of the nation’s most powerful lobbyists have ensured that the U.S. Congress does NOT amend the Schedule I status, which in turn has forced millions of Americans to suffer and die without safe and legal access to medical cannabis. It’s a bona fide crime against humanity! Right now, our only real hope is for Sens. Cory Booker of New Jersey, Kirsten Gillibrand of New York, and Rand Paul of Kentucky to advance the Compassionate Access, Research Expansion and Respect States Act. If passed, it would move “marihuana” to Schedule II–but even that minor adjustment is being fiercely resisted by the Anti-Marihuana Tyranny. The history of cannabis demonstrates so clearly how the republic, to which we all pledged allegiance in grade school, is dead.

  • Mlive Spammer

    Do you think these banks pulling out, has anything to do with the Nation’s top banks and financial institutions (Bank of America, Morgan Stanley, Well Fargo etc…), buying major stock in GW pharmacueticals?

  • Denny

    The feds are still running this show, and until they, actually the president, decides to reschedule it, then nothing meaningful is going occur.

  • Kathleen Chippi

    the banks are already all guilty for laundering drug, sex slave and slave labor money….and they are too BIG to jail—so after being busted and then not doing time it usually means you turned informant—no different here–collect the data for the feds and then kick them all out….