Banking On Marijuana Money
As litigation get’s passed and California gains momentum in the marijuana legalization efforts it’s pivotal that growers and dispensaries find a safe place for storing their money. Cash is dangerous in large amounts due to the illegal activity and crime that follows the paper trail. Truth is there needs to be regulation that allows legal owners of legitimate cannabis businesses the access to financial institutions. Access to banking is difficult due to the pressure that the Feds are placing on institutions and cannabis owners have been getting their debit and savings accounts closed out regularly.
The Federal government has instilled fear in banks housing cannabis money and the banks are afraid of losing their FDIC license. The U.S. Department of Treasury has helped in mitigating this problem by ordering the Feds not to prosecute banks as long as they adhere to federal banking guidelines. Many bills have been proposed, including HR 2076, the “Business Access to Banking Act” in order to address the need for civil protections for cannabis businesses wanting access to financial services. If you’re a cannabis business owner or if you are thinking about getting into the cannabis industry you need to contact Cannabis Tax and Accounting Services. Cannabis and Accounting Services provides personal tax plans for your business with the goal of making the cannabis industry more understandable.
Even though it’s medical-only, California is the largest legal cannabis market in the country with over $2 billion sales in 2014 with ArcView predicting that by 2020 we could see annual revenues topping $10 billion.