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Banking and Marijuana Businesses
The federal law that affects the provision of banking services to marijuana businesses is the Bank Secrecy Act of 1970 ( 31 USC 5311 - 5330). This law has created a "cash & carry" marijuana industry. Since marijuana possession and sales are still federal crimes if banks accept funds from marijuana businesses they may face federal criminal liability for "aiding and abetting" and money laundering. Reform is in the works, but is slow going. Hemp, and products containing cannabidiol (CBD) are finally legal under federal law.
Articles and Books
Cannabis Banking: Proceed with Caution
What is the status of current U.S. federal law relating to the provision of banking services to the marijuana and hemp industries? What are some of the major legislative reform efforts and their potential impact on cannabis banking? This article provides an overview of the answers to these questions and more.
Financial Services for Marijuana Businesses
Congressional Research Report by David H. Carpenter
Cannabis capital by
Call Number: ebook
Publication Date: 2020
The cannabis industry is seeing an explosion of entrepreneurship and a great amount of capital is flowing into the sector globally. It is essential for cannabis business owners to understand how to be one of the few businesses that secure funding. The answer to bridging this disconnect lies in not only understanding how to build a successful business but, directly listening from investors on what is required when backing a company. And most importantly, why they invest in certain companies, entrepreneurs and not others.
Bank Secrecy Act (BSA) & Related Regulations
BSA is the primary U.S. anti-money laundering (AML) law and has been amended to include certain provisions of Title III of the USA PATRIOT Act to detect, deter and disrupt terrorist financing networks.