Government,
Banking
Jul. 24, 2019
Navigating cannabis banking legislation: more questions than answers
Without traditional banking services, cannabis businesses are forced to operate in all cash — maintaining piles of bills at their businesses, manually transporting large sums for transactions, and making suitcases of cash payments to the federal, state and local tax collecting agencies. This creates serious public safety risks and logistical headaches, which have prompted both the California and federal legislature to pursue banking institutes.
Nicole S. Phillis
Davis Wright TremaineEmail: NicolePhillis@dwt.com
Nicole is a litigator and member of the Cannabis Practice Group steering committee; she advises cannabis clients on speech, advertising and marketing matters under California law.
Heather F. Canner
Davis Wright Tremaine LLPPhone: (213) 633-6800
Email: heathercanner@dwt.com
Loyola Law School; Los Angeles CA
Heather is a litigator whose practice focuses on financial fraud, corporate governance for banking institutions, and class action defense.
Cannabis businesses have long suffered from an all-cash crisis. Despite the growing number of states in which medicinal and adult use cannabis is now legal, it remains illegal under federal law. As a result, most financial institutions will not accept money from cannabis businesses. Without traditional banking services, cannabis businesses are forced to operate in all cash — maintaining piles of bills at their businesses, manually transporting large sums for transacti...
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