5 Safe Banking Alternatives For Cannabis Companies
With banks reluctant to work directly with cannabis companies, alternative "banking service solutions" have sprung up to help remedy the industry's cash problem.
Every month, staffers at NUG, a vertically integrated cannabis company in California, have to physically transport cash, accompanied by a licensed and armed security guard, via an inconspicuous company vehicle to a Pacific Gas and Electric office -- to pay their utility bill.
This may sound extreme, but it’s an all-too-common scenario among cannabis entrepreneurs. Despite weed’s legal status in most states and Washington, D.C., most federally insured banks won’t open accounts for marijuana businesses. The reason: fear of criminal or civil liability under federal law, which still classifies cannabis as a Schedule 1 drug.