Financial Services for Marijuana Businesses
Published By : 13 Aug 2014 | Published By : QYRESEARCH
Following the Federal regulations that started allowing banks to work with marijuana-related businesses, more and more banks are beginning to provide financial options to them.
About 105 banks and credit unions have begun supporting local licensed marijuana-related businesses. The banks are spread out across one-third of the United States of America. The Obama administration gave the green light to financial service providers in 20 states to aid legal pot distributors.
The sellers and distributors of marijuana have welcomed this move, hoping it will reduce fears linked to the business, and bring it into the mainstream economics structure.
Jennifer Shasky Calvery, the director of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), appreciated the change of federal rules. She said the rules are having the desired effect of providing financial services to marijuana suppliers, consequently making the activity more transparent. That would cause funds to reach the regulated financial institutions.
The new guidance has created three categories of marijuana-related reports. The U.S. treasury said a bank could file a limited report. It states that the dealer is adhering to government regulations, especially over the revenue generated to not fall into criminal hands. 502 such reports have already been filed since the guidelines have been brought into effect.
Filing a priority report will alert the authorities that a marijuana distributor is not earning solely through legal means. 123 of such cases have been filed already.
Filing a termination report will signal that a bank has ended its relationship with a dealer. 475 terminations reports have been filed since February, according to Calvery.