Banks Get the Green Light to Do Business With Hemp Companies
Lacking access to the banking system has been a big problem for the cannabis industry. Since marijuana is illegal at the federal level, many banks have shunned businesses that sell pot, making it difficult for those sellers to hold bank accounts. Some banks have provided services to cannabis companies but it's still a very gray area in terms of law enforcement.
The Obama administration issued the Cole Memorandum, which meant the federal government would not interfere with states that legalized pot. However, when Attorney General Jeff Sessions rescinded the memo in January 2018, it added uncertainty back into the industry. Although there have been no consequences thus far for banks doing business with cannabis companies, those that do walk a very fine line and have to ensure they follow tight reporting requirements. Many banks simply don't work with cannabis companies to avoid the chance of running afoul of federal laws. For many cannabis businesses, that means having to hold a lot of cash and hiring security guards to protect the money.
However, companies that sell hemp, which is now legal at the federal level, don't face those same challenges.
Source Fool.com
