These larger depository organizations must follow strict compliance guidelines, including the regular filing of Suspicious Activity Reports (SARs) per FinCEN regulations, to legally bank cannabis companies. Cautious big banks, always the last ship to change course,don’t see the potential business from legalized cannabis asoffsetting compliance risks. Theywill continue to refuse cannabisbusiness. With the support of maturing state banking regulations, cannabis-related businesses will seeksafe harbor Medical marijuana in credit unions and community banks. Thecannabis industry is in its infancy but already has $7 billion in yearly sales and is growing rapidly. Local banks and credit unions have less access to deposits than do larger institutions but they are located near cannabis businesses and have the resources for the due diligenceFinCEN mandates.They’re better positioned to make on-site checks, listen to local customers and closely analyze cash flow. These smaller banking institutions have a powerful economic incentive manage the compliance risk of working with marijuana businesses. Because larger banks tend to have significant assets in their accounts, the marginal benefit to taking on clients in the cannabis industry is usually far outweighed by the marginal cost of maintaining compliance, remarks Scott L. Greiper, President,Viridian Capital Advisors, a cannabis strategic and financial advisory firm . Related: Will the ‘Entrepreneur’ President Embrace theCannabisEconomy?
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