The Challenges Of Marijuana Banking Just Got Bigger
Elizabeth KhalilJanuary 22, 2018, 4:14 PM EST
Law360, New York (January 22, 2018, 4:14 PM EST) -- The state-legal marijuana sector operates in a largely cash-based economy — only about 400 banks and credit unions in the U.S. actively provide financial services to this sector — because marijuana remains illegal under federal law, despite the increasing number of states acting to legalize medical and/or recreational use. There is no carveout for state-legal activity and no safe harbor for financial institutions to serve customers engaged in such activity.
Until recently, though, banks and credit unions wanting to work with this sector could rely to...