Government,
Banking,
Administrative/Regulatory
Sep. 16, 2020
Bill opens bank doors to cannabis operators (read the fine print)
Assembly Bill 1525 will protect covered financial entities under state law and offer cannabis businesses the option to directly forward compliance information to banks and credit unions. Cannabis business would have to waive privileged information to take advantage of the banking services.
Meital Manzuri
Founder and Managing Partner
Manzuri Law
Email: Meital@manzurilaw.com
Meital was recently named one of the top cannabis attorneys in the nation. As one of the first cannabis business attorneys in California, Meital has earned a prominent reputation for her dedication to excellence in advising commercial cannabis businesses on myriad issues, including licensing strategy, corporate formation, and regulatory compliance, commercial contracts, joint ventures, M&A, best business practices and criminal defense.
Even though under current law financial institutions may provide services to the cannabis industry, the 2014 Financial Crimes Enforcement Network (FinCEN) guidelines make compliance and reporting particularly burdensome. Accordingly, financial services providers have been slow to open their doors to cannabis industry players. In fact, according to FinCEN reporting, in 2019, only about 700 banks across the entire country provided services to cannabis businesses.
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