“Although selling marijuana is now legal in 24 states and the District of Columbia, doing business as a legal marijuana company is a logistical nightmare. That’s because marijuana is still federally illegal, and banks open themselves up to potential seizure by the FDIC if they take money that is the result of a federally illegal act.”
Marijuana distributors are looking for safe places for their profits.
Some solutions have been banking compliance software or ditching the banks altogether for a new alternative in the American Indian Banking System.
“Hypur, which was founded by a team of banking compliance and software entrepreneurs in 2014, has successfully helped about five banks in Colorado serve some cannabis businesses in the state.”
“Anthony Rivera, a Harvard Business School graduate who led the 1,940 members of the Acjachemen Nation in Southern California for nearly a decade, says native governments could legalize marijuana. His organization, CannaNative, is trying to link tribal leaders from the 566 sovereign American Indian nations with finance professionals and legal-marijuana businesses to use the expertise gained from decades of managing casinos. That way, he said, they can go where big institutions such as JPMorgan Chase & Co. and Wells Fargo & Co. fear to tread — banking the legal-pot industry’s estimated $3 billion in annual revenue.”
“The Indian casinos are basically small little banks,” Rivera said. “They receive deposits in the form of gaming, and they manage that cash in a way which is highly regulated with commissioners and regulators.”
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