Cannabis banking

Cannabis banking is the deposit, payment and lending services that banks and credit unions provide to state-licensed cannabis businesses while following federal anti-money laundering rules and FinCEN's 2014 guidance.

What cannabis banking is

Cannabis banking is the deposit, payment and lending services that banks and credit unions provide to state-licensed cannabis businesses. Because marijuana is still federally controlled, institutions that serve these businesses follow the Bank Secrecy Act and FinCEN's 2014 marijuana guidance, which set out the due diligence and reporting they are expected to perform.

How it works

Onboarding: the institution verifies state licenses, ownership and expected activity through customer and enhanced due diligence.
Ongoing monitoring: account activity is reviewed against what the business reported and against state licensing records.
Reporting: the institution files marijuana-specific SARs and Currency Transaction Reports as required.
Cash logistics: deposits usually arrive through armored transport and smart safes rather than branch visits.

Why it matters

Without a bank account, a cannabis business has to pay employees, vendors and taxes in cash, which raises the risk of theft and makes accurate records harder to keep. Accounts opened at institutions without a dedicated program are also more likely to be closed with little notice.

What to look for

Deposits held at FDIC- or NCUA-insured institutions.
A long compliance track record with cannabis accounts.
Cash logistics, electronic payments and payroll support.
Access to lending and financial support as the business grows.

How Safe Harbor helps

Safe Harbor has provided compliant cannabis banking since 2015 through insured partner institutions. See Safe Harbor's banking services.