Aug 7, 2019
With seven in 10 Americans living in a jurisdiction where local
laws permit recreational or medicinal marijuana use, banks
focused on providing banking services to cannabis-related
businesses in a way that improves public safety, reduces tax
evasion and supports local economic growth. On the latest
episode of the ABA Banking Journal Podcast, Mark Haden talks about
how Colorado National Bank developed a program to provide deposit
services to cannabis-related customers in its home market of
On the podcast, Haden discusses:
- His bank’s evaluation of the 2014 Financial Crimes Enforcement
Network guidance on serving marijuana-related businesses and its
consultation with regulators.
- How the bank sweeps most marijuana-related deposits off its
balance sheet in order to be nimble should the regulatory situation
- The bank’s enhanced monitoring system to track
marijuana-related cash and why it does not lend to or provide
payments system access to these customers.
- The importance of defining the kind of marijuana-related
entities a bank might consider serving, including directly involved
businesses, vendors to the cannabis industry and individual
employees and owners.