Cannabis Banking Bill Will Widen Access To Banking Services

Cannabis Banking Bill Will Widen Access To Banking Services
Cannabis Banking Bill Will Widen Access To Banking Services

Cannabis Banking Bill Will Widen Access To Banking Services

The cannabis industry has been facing numerous challenges, one of which is limited access to banking services. However, a new cannabis banking bill is set to change this landscape and widen access to financial services for cannabis businesses.

With the federal government not recognizing cannabis as a legal substance, many credit card companies and federally regulated banks have been reluctant to work with the industry. As a result, most cannabis businesses have been operating on a cash-only basis, which puts them at risk of theft and robbery. Storing large amounts of cash on-site has become a necessity for these businesses.

In Missouri, a new law has been passed to ease the burden on banks and enable cannabis businesses to access banking services more easily. Previously, banks had to conduct their own audits of cannabis establishments to ensure they were operating legitimately and within state regulations. However, this process was time-consuming, costly, and unnecessary since the Missouri Department of Health and Senior Services already performed inspections.

Under the new law, cannabis businesses can request state agencies to share their applications, licenses, and other regulated or financial information with banks. This change is a significant step towards the normalization of the cannabis industry, as it allows these businesses to be treated like any other legal business.

The timing of this banking bill couldn’t be better. Since the legalization of adult-use marijuana sales in Missouri, the industry has been flourishing. On average, around $4 million worth of legal cannabis is sold in Missouri every day, and total sales have reached $592.3 million in just five months. The industry has also created thousands of jobs, with approximately 15,000 people employed in Missouri’s cannabis industry.

The access to banking services will undoubtedly fuel further growth in the industry. It will provide cannabis businesses with more financial options, including the possibility of obtaining business loans from banks. This is particularly crucial for minority groups who currently lack access to resources like loans in the cannabis industry.

While the banking bill tackles financial barriers, it also introduces additional security measures. One of these measures is a mandatory fingerprint background check for all workers in the cannabis industry. Previously, background checks were conducted, but fingerprints were not taken for all employees. The constitutional amendment that legalized adult-use marijuana in Missouri removed the fingerprinting requirement, but the new law reintroduces it.

The impact of the fingerprinting provision remains to be seen, but many industry insiders believe that as long as there is enough time given to comply with the requirement, it should not pose a significant issue.

Overall, the cannabis banking bill in Missouri marks a significant milestone for the industry. It not only widens access to banking services but also helps normalize the cannabis industry and creates more opportunities for growth. With the continued expansion of the legal cannabis market, it is crucial for financial services to adapt and support this emerging industry.



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