[Beta Test Team]

So I thought we could use a good/bad bank list here, for both recreational and medicinal business (because the Feds treat them as the same thing), as well as ancillary businesses.

Last week I had my bank account shut down by KayBank for working in an ancillary business to Cannabis producers! That's like KeyBank closing the account of the water company for selling water to Cannabis growers. Nothing I did with the account violated any Federal banking rules or laws. That is the reason I started this thread. It's unheard of (at least to me and people I've asked) for a bank to close the account of ancillary business, so it's safe to say I'm not happy with KeyBank.

This thread is meant to collect experiences with banks in our industry. Please post if you've had a good or bad experience with a bank. And please add some context.

As a general guide, community and credit union banks are those more likely to knowingly serve legal and above the board Cannabis producers, processors, and sellers. I'll add a few banks I know of that will serve this industry.

In this way I hope we can make a useful list to save other people the huge headaches I'm having right now.

The Feds released guidelines for banks that want to serve our industry, but sadly the guidelines are not bright lines, they're more opaque. So many banks won't deal with the Cannabis industry. I think in 2015 or 2016 things may change on the Federal level, at least things look like they going to change...

Currently most growers, processors, and sellers either use a bank that knows what they're doing and is okay with it, or they're not telling the bank (which is a bad idea, too risky because the bank can close the account without notice and take all the money).

See next post for my starting list.

[Beta Test Team]

Good banks for ancillary Cannabis businesses:

Umpqua bank:
I just opened an account there and told them the account will be used for work in the ancillary Cannabis business, and they were more than happy to take me in. This bank is found along the west cost, in WA, OR, and CA, as well as wherever Sterling banks are located (more middle America).

Sterling bank:
Soon to become part of Umpqua bank.

First Security Bank of Nevada:
They currently only have locations in Nevada.

MBank:
They currently only have locations in Oregon, but they also serve WA.

The Fourth Corner Credit Union:
Once they open they will serve CO.

Good banks for Cannabis businesses:

First Security Bank of Nevada:
They serve medical businesses in Nevada, and if Nevada had a rec. program they likely would serve it, too.

MBank:
They serve medical and rec. businesses in OR and WA.

The Fourth Corner Credit Union:
Once they open they will serve medical and rec. business in CO, and will serve hemp businesses as well.

More to come...


Bad banks for ancillary Cannabis businesses:

KeyBank:
They closed my account last week with very little notice, and won't tell me why (so I filed a complaint with the Consumer Financial Protection Bureau). But I know it's because of some work I've done.

Pretty much any big bank:
Stay away from BoA, Chase, Citi, Wells Fargo, USBank, etc.


Bad banks for Cannabis businesses:

Pretty much any big bank:
Stay away from BoA, Chase, Citi, Wells Fargo, USBank, etc.

[Beta Test Team]

Here's where to lodge a complaint with the Feds if you think your bank is in the wrong. Like for example when KeyBank closed my account and won't tell me why, so I filed a complaint and KeyBank has 15 days to respond:
https://www.consumerfinance.gov/complaint/

[LSWM]

Awesome thread bud! Hope to see more banks up here soon!

[Beta Test Team]

Hi. I'll add some more now there's an interest in the thread. But not likely for a few days.

[LSWM]

I don't think the problem is lack of interest but that this forum doesn't get much love.

I think it's in the right spot but many people don't frequent these parts unless a thread starts getting attention.

[FlowerFarmer]

I was speaking with the store manager, and the hydro shop I go to occasionally is having banking troubles as well. I guess a few of the big bank names have closed their accounts out of the blue without explanation.

They are just a garden center in a non-med state. No relation to the "cannabiz" whatsoever outside of being a nondescript "hydroponics" store. Not a dispensary or anything like that.. just a grow store who's been seemingly banking for over a decade with no issues.

Damn shame that "hydroponics" is still being associated with growing pot. WTF? It's 2015 and hydroponics is very much a real thing outside of just weed farmers.

I can see the current dilemma with dispensaries and what not, but the garden store?
2 steps forward, 3 steps backwards...I thought this prohibition era was coming to an end. Makes ya wonder what the opposition has up their sleeve next.


*edit - my buddy that runs the shop said it was USBank, but he believes they've been having trouble with a few other big bank names as well.

[Beta Test Team]

Wow, that's insane.

I am dealing with Cannabis growers directly in terms of the bank account of mine that was closed, which still isn't right, but at least it's more than simply running a garden store.

What really gets my goat is they're allowed to close accounts without giving a reason! That's so ripe for abuse...like, hey you're gay, black, transgender, etc., so we're closing account, but we don't need to admit the real reason. I am thinking about suing KeyBank over that very issue, and if I was rich I would for sure, but as I'm not rich I likely can't win that fight.

[Jhhnn]

Dunno that there's any difference, but I'd suggest that cannabiz folks investigate local credit unions. Modern membership rules are much relaxed & they offer all the services that business needs.

The big banks are in a time of over-reaction to close scrutiny by federal regulators who have good reason to stick a microscope up their asses. With a nod & a wink, they've provided money laundering services to a variety of shady businesses for a very long time. They're playing number games with the feds over small accounts even as they work hard to keep the big dirty money flowing.

How to launder money from gun running, narcotic trafficking, organized extortion, illegal gambling & the rest? Through management companies handling the money of shell corporations who own cash businesses like laundromats, car washes, vending machines, payday loan outfits & similar. Amusement centers, bowling alleys, bars- anything where cash receipts can be padded. It's even better if those business entities operate out of offshore tax havens. The whole structure is right there, has been for decades if you're big enough & smart enough to use it. Meyer Lansky & friends set it up decades ago.

[Payaso]

Jhhnn is correct, locally the credit union is way more cool and accepting of all biz...

Tricky part comes with the credit cards.