A dilemma: when the companies take their cash down to the courthouse to pay tax guess where that ends up? At the bank in public funds accounts that we hold. So, if we can't bank it, and we shouldn't bank anyone doing business with them, should we stop doing business with the government? :)
Now, after the ICBA Capital Summit it was clear that a few officials will not separate the ask from banks to clear up the banking side of it versus thinking we are trying to get them to make a legalization decision on the drug. That is pretty frustrating after the House has passed the SAFE act 7 times I think, and the Senate continues to hold it hostage for political reasons on both sides. Hopefully it will clear committee with no mark ups this time. I think that is the best scenario for SAFE to pass this time. I heard more than once if it clears committee clean it should pass with enough votes and probably
There is a lot of opportunities in our market and that continues to grow. We have not moved on it yet, but are exploring options as we have improved our BSA software and are looking at policies.
My question is: Would you recommend, or require, any company you work with to use a third party vendor to help them manage their compliance? I haven't done a deep dive yet, but explored one that looked like you need to either bank a lot to make it worth while to use from the bank side of things, or they might provide a service to the MRB that could help them maintain compliance and thus do the same with their banking relationship.
Original Message:
Sent: 05-23-2023 09:29
From: Rob Blackwell
Subject: Tuesday Topic: Exploring the Cannabis Opportunity
Thirty-six percent of banks are headquartered in a state where cannabis is legal for recreational and medicinal use, and another 35% are headquartered in a state where cannabis is legal for medicinal use only, according to Bank Director. Legal sales of the substance are expected to grow at an 11% CAGR between now and 2027, from $26.2 billion to $44.6 billion.
These figures highlight a massive opportunity, especially considering that institutions serving the cannabis industry aren't getting dinged by regulators during exams. For the most part, these banks have limited their offerings to deposit products, but a few are lending-and commanding higher rates on those loans. (To learn more about cannabis lending, check out this guide.)
Has your institution considered opportunities in cannabis? Why or why not?
------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
------------------------------