US Banks to Do Business with Marijuana Dealers

Published Date : Aug 13, 2014

Huge dilemma haunts marijuana businesses in US to this day – while an increasing number of states are approving the sale of marijuana, it still remains illegal under country’s federal law. The legal complications have forced majority of businesses to operate basically on cash-only basis because banks do not wish to risk their funds with these businesses. 

But the conditions might soon change – a growing trend has been observed amongst banks and credit unions throughout the country since the sale of recreational marijuana was legalized in Colorado some eighth months back. At least an estimated 100 banks and credit unions are currently working with marijuana companies. Though this represents less than 1 percent of all the US banks and credit unions, this is a positive sign for marijuana business and means that they can now be covered by the country’s financial system.  

Marijuana was legal in some US states such as Colorado, between 2011 and 2012. During this period, many financial bodies operated accounts for marijuana businesses. But when another memo surfaced about the legal status of marijuana sales in August 2103, baring it of its legality, many financial bodies closed accounts of marijuana dealers. 

Now, federal agents are trying to reassure banks that they could incorporate services with marijuana dealers, but only if they follow some procedures, such as filling details about transactions with customers. 

Without proper financial aid from financial institutes or banks, marijuana dealers have had to operate their businesses largely in cash only. But now that the situation seems a bit relaxed and banks are increasingly getting associated with marijuana businesses, things could work in favor of rule complying marijuana dealers. However, the level of stability of this financial environment is not yet clear.