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September 26, 2022 • Issue 22:09:02

Cannabis:

a multi-billion-dollar market in limbo

unions that service the industry confront an extremely high
regulatory barrier with strict monitoring and reporting
requirements.

The Financial Crimes Enforcement Network, a repository
for many of the required filings, reported that just over 700
banks and credit unions (out of nearly 12,000 nationwide)
are known to have cannabis businesses as customers.
These include growers, like Bigsby, testing labs,
distributors, dispensaries and other businesses that "touch"
weed. Businesses that work with these companies but don't
touch weed, also are being shunned by banks and credit
unions. Examples include packaging producers, plumbers,
electrical supply shops, even landlords and attorneys.

One financial institution (FI) that recently joined the ranks
of the cannabis-friendly is Orlando, Fla.-based Cogent
By Patti Murphy Bank. "We are committed to being a financial partner to
businesses in this space," Chris Hartman, the bank's chief
igsby Farm is a 10-acre cannabis farm in the deposit officer, said in a press release.
foothills of southern Oregon. And like most
cannabis businesses, Bigsby can't get a bank Cogent is outsourcing the compliance workload to Green
B account, though not for lack of trying. At least Check Verified, a regulatory software and services
four banks have shut down accounts opened by Bigsby company that works with FIs as well as licensed cannabis
and owner Amanda Metzler. One bank, Wells Fargo, even
closed her personal credit card account in addition to a
trust account she had set up for the business.
Contributed articles inside by:
As a result, all of Bigsby's business transactions—sales of
product, salaries, even license and tax assessments—are
paid in cash. "It's the most unsafe thing ever," said Metzler, John Mitchell ..........................................................................................19
as she recounted the travails of managing the mountains of Bill Vasquez .............................................................................................20
cash that accompany every business transaction.
Natasa Cvijanovic .................................................................................28
Thirty-nine states and the District of Columbia now have Ken Musante ..........................................................................................30
legalized the sale of cannabis products for medicinal and/
or recreational purposes. But because cannabis remains Nicholas Cucci ........................................................................................32
illegal under federal law, federally insured banks and credit Elie Y. Katz ..............................................................................................34

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