Financial support for the cannabis industry continues to grow
The support that cannabis is receiving through the banks in the state of Massachusetts seems to be increasing more and more as time goes by. As of today, at least six financial institutions are reportedly lending a hand to the Massachusetts cannabis industry, which means that support has doubled in the last three years. There is still a lot of work to be done, and it could be on the way through the federal SAFE Banking Act.
Three years ago, only GFA Federal Credit Union, Century and BayCoast Bank were the financial institutions found to support cannabis customers. Still, Cannabis Control Commission Chairman Steven Hoffman said he is aware that, based on federal law, “any bank that is servicing the cannabis business is taking on some risk,” but that he is “grateful for those that have stepped forward because they have made an incredible contribution to public safety.” He added, “I continue to have conversations with new banks that are starting due diligence to enter the industry. We will continue to see new entrants.”
However, although there is still no federal banking support for cannabis companies, that appears to be coming to an end. Last week, the SAFE Banking Act was again passed by the US House of Representatives. Should it become a reality, any financial institution that wants to serve cannabis companies can do so without facing penalties.
According to a report shared last month, the Federal Financial Crimes Enforcement Network (FinCEN) indicated that, by the end of November of last year, about 515 banks and 169 credit unions were serving cannabis-related businesses nationwide.