California bill encourages banks to work with pot businesses
23 Apr 2019

AP — California legislators considered a plan Monday intended to encourage more banks to do business with marijuana companies that have been frozen out of thousands of financial institutions.

Most Americans live in states where marijuana is legally available in some form. But most financial institutions don’t want anything to do with money from the cannabis industry for fear it could expose them to legal trouble since the federal government still considers marijuana illegal.

The conflict between state and federal law has left businesses in California’s emerging legal pot industry in a legal dilemma, shutting many out of everyday services such as opening a bank account or obtaining a credit card. It also has forced many businesses to operate only in cash — sometimes vast amounts — making them ripe targets for crime.

An Assembly bill would authorize state regulators to share detailed sales, cultivation and shipping information collected from cannabis companies with banks, a step supporters hope will provide additional assurances to financial institutions that a pot shop or grower is operating within the law.

By Michael R. Blood, AP, 22 April 2019

Read more at the Associated Press

Read more:

US Lawmakers Advance Cannabis Banking Bill

California Senate supports state-backed bank for pot money

Proposed US banking fix for marijuana may not open all doors

Count reading this article to your CPD minutes, by signing up to our CPD Wallet

FREE CPD Wallet
No Responses to “California bill encourages banks to work with pot businesses”

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.