The largest U.S. banks have stayed well away from the cannabis sector, as federal law still “prevents banks from banking cannabis businesses,” the American Bankers Association, a trade group, said in a letter sent this month to leading U.S. senators. Banks could be branded as money launderers should they handle proceeds from the sale of cannabis, the ABA has warned. Other banking institutions maintain a more optimistic outlook. Regulatory guidance published in 2014 by the U.S. Treasury Department’s Financial Crimes Enforcement Network on how to bank for cannabis businesses without running afoul of FinCEN’s rules gave a green light for some financial services entrepreneurs. One such financial technology company, North Little Rock, Ark.-based Abaca, partners with established banks to offer banking services, including accounts and payment systems, to cannabis sellers.
Mmp News Author, Medical Marijuana Program Connection, 12/27/2021 08:51:00
Open article: https://mmpconnect.com/fintech-ceo-takes-on-perils-of-banking-for-cannabis-businesses/