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Marijuana Business News

New York Banks: We Will Not Work With The Medical Marijuana Industry

banking marijuana industry bankIf you own a marijuana business, chances are you do not have a bank account. And if you do have a bank account, there is a good chance that your account could be shutdown at anytime if it is determined that you grow, process, or sell cannabis. The feds have issued ‘clarifications’ that were supposed to help businesses in the marijuana industry gain banking access, but in reality those clarifications just added to the confusion. Banks don’t want to operate in grey areas, so rather than even deal with it, most just have a standing policy to not work with marijuana businesses.

The five medical marijuana companies in New York are learning the hard way just how harsh banks are towards the industry. Per Marijuana Business Daily:

A handful of major banks in the state – including Wells Fargo, PNC Bank, JP Morgan Chase, TD Bank and Key Bank – told Politico that they have no plans to work with the marijuana industry in New York or anywhere else.

“Until we get clarity from the feds, we are not banking on marijuana-related business,” a spokesman from JP Morgan Chase told Politico.

Other banks echoed the sentiment, saying the lack of clarity is a deal-breaker because they don’t want to risk breaking federal laws in order to work with cannabis companies.

If these high powered companies can’t get bank accounts, I think it’s safe to say that the average cannabis entrepreneur won’t be any luckier. If New York’s market is large in anyway, that’s going to be an enormous pile of cash that has to be secured, transported, and stored. Legal industries shouldn’t have to take such risks. They should be able to deposit their currency like other businesses do.

  • Jon Alan

    For advocacys sake let’s be sure to tell our banks that we need medical marijuana and If we can find an honest bank that understands and will work with the industry then we should move our money there. I know I am an idealist. Nothing to lose for dreaming. Thats how we got this far. Pushing the wheel uphill. Next we have to inform the politicians that it’s long past due for deployment of the clinics, and the law has to be adjusted to include dried herb and limited quantity growing rights, especially for those far from a clinic. I live in the middle of nowhere in NY. Hours from the location of the first clinic. Pushing the wheel uphill.

  • Jordan Shorette

    well let them throw their fit, once Bernie is elected they will have something to tantrum about!

  • States with legal medical marijuana should form co-operative banking facilities for the industry. If they want to collect taxes, they need to enable banking transactions.

  • PhDScientist

    The parallels with segregation are overwhelming.
    Medical Marijuana patients shouldn’t be treated as “second class citizens”
    Medical Marijuana dispensaries shouldn’t be treated as “second class citizens” either.
    Medical Marijuana is a “Gift from God” for Chemotherapy patients. Cancer patients should picket those banks.

  • Another lost soul

    Well it won’t really matter, that system they set up is a complete sham. No one in their right mind is going to drive hundred of miles to one of the five places to get their “metered” daily dose of God knows what. And this will further continue to drive the black market much like what’s happening in I think Minnesota

  • Dani R

    Well then the NY banks should be looking forward to losing a lot of money. This opportunity missed is their own fault, I thought they were greedy enough to love that green, as in cash.

  • Tony Aroma

    What a crock of BS! Banks are above the law. They can do pretty much anything they like, like launder billions in illegal drug money, and suffer NO consequences. So they don’t want to deal with LEGAL drug money because they’re afraid of the feds? Not likely.

  • Social Conservative

    Chicken shit dirt bag bankers!