[HellsBells33]

Be careful when depositing cash that reeks of weed. The banks then put this cash back in the register and give it to the next customer making a withdrawl. They might not be happy if they always have to lysol your deposits.

[Buckowens]

You are aware a good deal of these banks that take canna business are trying to keep their actions quiet, since they (real banks not some of the weed bank start ups mentioned) are FDIC insured. They want that insurance, threads like this will get folks accounts closed pretty quick.
Banks are on the defensive. They want our money, but more than that, they want to stay open. Thats not to say it's not going to change in the future, but in the mean time I'm just looking out for those of us that don't want our accounts closed.

[Beta Test Team]

Originally Posted by Buckowens

You are aware a good deal of these banks that take canna business are trying to keep their actions quiet, since they (real banks not some of the weed bank start ups mentioned) are FDIC insured. They want that insurance, threads like this will get folks accounts closed pretty quick.

No, they're not.

They're allowed to take Cannabis businesses by the Fed and FDIC, that's the whole point. Like I already wrote to you here:
https://www.icmag.com/ic/showpost.ph...9&postcount=14

It's time to come out of the dark and stop trying to hide things, well, that is, if they're a legal Cannabis company, not some guy with a warehouse that wants a Ferrari. What the banks are doing is perfectly legal. The more companies using banks the more other banks see the willing banks doing it and having great success, the more banks will join.

And the only startup bank I posted was in CO.

I hope this is the last time you post that same thing in this thread. Really, once if enough.

What the banks are doing is legal, and the only way this industry can survive.

[Beta Test Team]

Originally Posted by Buckowens

I'm just looking out for those of us that don't want our accounts closed.

If you think hiding what you're doing from the bank is a good idea, you're wrong. That is, if you're a legal company, if not, well, best of luck.

[FlowerFarmer]

Well something certainly has been up lately.

What do you believe the explanation is for the closing of accounts of legitimate hydroponic stores? It appears to be happening across the country right now.

- Your City Hydroponic & Indoor Garden Supply
"We are no longer able to provide our services to your company"

- Your City Garden Center
"We are happy to do business with you"


^Same banks mind you. They want the business, but they are apparently want to be very careful in doing so. This same response from varies banks indicates that they've all certainly gotten a memo or some type of new regulation and are filtering through their accounts and closing accounts which fit certain criteria.

They seemingly don't care if hydroponic supplies are being sold, they just don't want the company/account name to indicate so. They want to do business, but they want no blatant association with this "industry". These are not necessarily "cannabis" shops either. This is happening to legitimate garden stores, smoke shops, vape stores, and similar legal businesses who cater towards this industry in a wink and nod kind of way. This is happening in multiples states that I am aware of, medicinal or not.

Obviously they are a private business and it's perfectly legal for them to close accounts without explanation, but these instances certainly do lend one to believe that they are on guard for accounts that fall into a certain criteria that has recently been announced by higher regulatory powers.

Much along the lines that Buckowens was trying to say. I don't see why the need to dismiss him. Just because bank may be "allowed" to do business with said types of companies it's apparent that a lot of them would still rather keep it discreet for now rather then being the 1st to stick their heads out on that chopping block. Prohibition is coming to an end, but cannabis is still a schedule 1 drug and we are still at war on a federal level until that changes.

I see nothing wrong with keeping thing more vague to keep the parties involved comfortable until DE-schedulement or further legalization happens. Banks are going to be more comfortable dealing with "Bob's Herbal Wellness Center" as opposed to "Bob's Cannabis Extravaganza & Supply". This is a good thing. This is gradual acceptance of our industry without blatantly throwing it in their face for everyone, including the feds to see.

the only way this industry can survive

I don't really think anything can stop this industry per se. There are too many billions floating around. Keeping it professional,mature, and discreet while abiding by some banks wink and nod requirements sure sounds a lot better then running around with mucho cash because we insist our accounts remain as "Bob's Cannabis Shop".

Just my 2c.

It's time to come out of the dark and stop trying to hide things

No it's not. Not quite in my opinion. It's still federally illegal and the feds are still very much at war with cannabis with the intent to prosecute, incarcerate, and continue their asset forfeiture scheme. Not trying be a marter...


Something is brewing, and it seemingly goes beyond the obvious direct "cannabiz" happening in more legal states. I now know several hydro shop owners and head shop owners that are having trouble banking. This has not been a problem in prior years. Credit unions and smaller banks are definitely the way to go, but it can be difficult for larger companies that have stores in multiple cities with depositing needing made regularly.

[Beta Test Team]

You have to understand the rules to understand why some banks are gun shy. The fact is, the bank is the one the Fed forces to make sure everything's on the up and up. The Fed has put responsibility of law enforcement on the banks (i.e. to make sure the companies are following rules set forth by Fed for use of banks), which is really lame, but it's how things are at least for now.

That's why many banks don't want to deal with Cannabis and Cannabis ancillary businesses, including 'hydro' shops. They look it as a risk-benefit ratio and cost-benefit analysis. Even though it's perfectly legal for them to serve Cannabis and Cannabis ancillary businesses, many don't want to do so yet, because they don't want the headache of making sure the business are toeing the legal line. And then some banks are very conservative (in terms of politics) and either disagree with Cannabis use, and/or worry about tarnishing their "good name" by serving the Cannabis and Cannabis ancillary businesses.

There's no way companies that are doing millions of dollars of businesses per year can operate efficiently without a legit bank account, and without a bank that is happy to serve them.

And it is time to come out of the dark for legal companies that are on the up and up (like not selling out the back door). Like I wrote, for growers that only see $$$ and are not legal, too bad for them, they should either get legal or get out.

Really, you and Buck are in the mindset that isn't the reality today for legal, above the board companies. While you both are correct for some guy that wants to be a millionaire by doing things illegally.

The reason we should have this thread is to destigmatize the legal companies and banks that want to serve them. And by not having this thread, and not being open about this issue, it's not fair to companies and people that are ignorant of their options. Why should it be okay that just a few companies get to use banks while others do not, simply because the ones already with banks don't want to share their toy?

[Beta Test Team]

Here are the rules the bank must follow to serve Cannabis business:

"Feds Green Light Marijuana Banking"
https://www.cannalawblog.com/feds-gre...juana-banking/


- Verify with state authorities that a business is duly licensed and registered.

- Review the license application and related documentation the cannabis business used to obtain its state license to operate its marijuana-related business.

- Request from the state licensing and enforcement authorities available information about the business and related parties.

- Develop an understanding of the normal and expected activity for the business, including the types of products to be sold and the types of customers to be served.

- Monitor publicly available sources for adverse information about the cannabis business and related parties.

- Periodically refresh information obtained as part of customer due diligence using methods and timetables commensurate with the risk.


See two posts down for the guidelines set forth by the DoJ with respect to FinCEN and other rules for banks to serve the industry:
https://www.icmag.com/ic/showpost.ph...8&postcount=29

[Beta Test Team]

And some big banks do serve the Cannabis industry, sort of, for example, Bank of America is processing Cannabis tax dollars and other business fees from Cannabis industry for WA state.

But BoA won't work with I-502 companies for the reason stated above, not until the rules change such that the bank is not the one forced to make sure companies are on the up and up (rather, the state and Feds be the ones to be law enforcers). Right now it's too much headache for them because the onus is on them to make sure companies are doing things legally:

"Big Bank Says “Yes” To Cannabis Money. Sort Of."
https://www.cannalawblog.com/big-bank...money-sort-of/

"Wash. state shops for a bank to handle marijuana money"
https://www.komonews.com/news/local/W...224785712.html

[Beta Test Team]

Here's the DoJ's rules for banks that want to serve the industry:

"Marijuana Business Guidance"
https://www.scribd.com/doc/207174093/...iness-Guidance

[FlowerFarmer]

Thanks for the responses and the links.