Cannabis Business Banking Restrictions
The demand for secure banking services for cannabis businesses has risen drastically since recreational use became legal in Washington State in 2012. FDIC insured banks are obligated to obey federal laws making it impossible for these canna-businesses to obtain basic checking accounts from more traditional financial institutions. When canna-businesses tried opening accounts at corporate banks, their accounts were subsequently shut down once the bank was confronted with the nature of the business. Common business operations like processing payroll, paying vendors and even paying taxes become obstacles for these cash-only businesses to, well, conduct business. Not to mention the dangers they, and the community, might face when storing that kind of cash on premise.
Cannabis Business Safety Concerns
Due to these public safety concerns, “the state appealed directly to the executives of state-chartered financial institutions to encourage them to take cannabis cash” stated Joseph Vincent, Director of Legal and Regulatory Affairs for WA Department of Financial Institutions, when speaking to the online publication The Stranger in April of 2017. Once state agencies established these cash-only businesses as a public safety issue, some state-charted banks and credit unions jumped into action.
Commitment to Community
Enter O Bee Credit Union which boasts a proud history of serving the underserved. As one of the first financial institutions in Washington State to accept cannabis related business accounts, they’ve already jumped through all the hoops allowing them to offer safe, secure, hassle-free banking along with industry knowledge and expertise. O Bee’s services extend to employees of cannabis-related businesses providing a safe place to deposit payroll checks and obtain credit cards along with home and car loans. Their slogan “Let’s Be Buds” communicates the partnership they’re intent on building with cannabis related businesses in the community.
Learn more about opening a cannabis related business account with O Bee Credit Union »
Further reading… “The Credit Unions and Small Banks That Solved the Cannabis Cash Crisis“