Welcome to Felicia Jones’ Insight into CBD and Banking
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Embark on a unique journey with Felicia Jones, a pioneering figure at the crossroads of the banking industry and the burgeoning world of CBD and Cannabis markets. Since 2016, I’ve dedicated my career to bridging the gap between traditional banking services and the innovative potential of Cannabis businesses.
Through my blog, I aim to demystify the financial challenges and opportunities within the CBD sector, offering valuable insights, guidance, and education to entrepreneurs and enthusiasts alike. Join me as we explore the evolving landscape of Cannabis banking, unlocking potential and fostering growth in this dynamic industry.
- Why Athletes are Turning to Hemp Creams for Recovery
Athletic competition puts enormous physical strain on their bodies, which is great for improving performance but may lead to injuries and sore muscles.
CBD can assist athletes in quickly returning to competition by relieving pain and discomfort quickly. CBD creams are especially helpful at soothing sore muscles and joints.
1. Hemp May Reduce Inflammation
Working out exposes your muscles to damage from exercise itself and other sources like temperature. This may prompt your body to produce inflammatory chemicals which lead to pain and discomfort in your muscles.
Hemp creams can provide instantaneous relief from aching joints and muscles, reduce inflammation and speed recovery from exercise faster. Plus, their topically applied application leaves no sticky residue!
Quiet Monk’s cooling CBD cream features menthol and other cooling ingredients for maximum effectiveness, with an appealing rosemary mint fragrance. Additionally, this cream features primary essential oils, natural ingredients and broad spectrum CBD for an all-around cooling effect. All products undergo third-party testing for heavy metals, molds and pesticides using organic U.S. grown hemp. They advise starting out small before gradually increasing dosage until your desired effect has been reached – free from sulfates, phthalates parabens dyes synthetic ingredients while its nourishing oils and moisturizing shea butter make this cream luxuriously soothing on your skin!
2. Soothes Muscles
CBD creams are ideal for targeting specific areas where pain exists, and should be combined with oral CBD drops to achieve an efficient method for alleviating it.
Hemp seed oil contains high concentrations of Omega-3 and Omega-6 essential fatty acids that have been shown to reduce inflammation, soothe muscles and support healthy cell growth – qualities which make this an ideal product for muscle recovery.
After your workout, using this cream can help alleviate post-workout soreness that is so common among fitness enthusiasts. Its formula incorporates camphor – an extract from trees that provides warming sensation – and menthol crystals for cooling effects, plus no pesticides, GMOs or organic U.S.-farmed hemp to provide a pesticide-free product with no cooling sensation or cooling effects.
This lightweight formulation can easily absorb into all skin types and is paraben-free for ultimate safety. Packed with soothing aloe vera extract and pink grapefruit peel oil to ease pain and swelling, as well as no artificial dyes or fragrances, this lotion also contains no artificial dyes or fragrances and paraben-free components.
3. Soothes Joints
No matter if it’s post-workout soreness or chronic joint discomfort, CBD creams offer soothing solutions. Quiet Monk CBD offers one such cream featuring cooling menthol for soothing effects and all-natural CBD hemp oil to aid recovery; its lotion application makes it suitable pre and post workout use.
This CBD cream features cooling capabilities thanks to menthol and is packed with soothing botanical ingredients such as rosemary extract, peppermint oil, chamomile oil and white willow bark extract – as well as shea and cocoa butters as well as jojoba oil for maximum nutrition and benefit.
Quiet Monk offers an innovative product: their broad-spectrum CBD cream with no trace amounts of THC is specially formulated with Hemp Seed and Coconut oils as well as Arnica Clove Helichrysum Wintergreen Peppermint essential oils to provide a warming and relaxing effect. Plus it comes in an easy twist-and-pump bottle for effortless application!
4. Reduces Pain
CBD creams can help ease muscle soreness and promote recovery after exercise, often featuring cooling menthol for extra pain relief. Furthermore, these products contain other natural ingredients designed to reduce inflammation, soothe the skin, and replenish essential nutrients.
Quiet Monk CBD muscle recovery cream is an easy-to-absorb non-greasy formulation containing helichrysum oil to increase circulation for deeper relief, full spectrum hemp extract with trace amounts of THC and botanical oils such as peppermint and rose hip for additional benefits.
This CBD product is a powerhouse of healing, with a potency CBD dosage and coconut oil to sooth skin irritations. Infused with cooling menthol for added relief and other soothing ingredients like white willow bark extract, camphor oil and wintergreen oil for maximum therapeutic effectiveness, this cream is an ideal option for sensitive skin that requires targeted topical application.
- Advanced Cannabis Banking Tips For FIs to Thrive in the Green Economy
While opening bank accounts for cannabis businesses may be challenging, they can still safely deposit funds and build savings and credit. Financial Institutions will need to implement strict operations and cash management best practices; but for companies operating within an increasingly regulated industry it can be well worth their while.
Invoice Financing
Invoice financing enables businesses to obtain cash advances based on the value of unpaid invoices, providing cash for essential business needs. Finance providers offering short-term funding options allow companies to quickly capitalize on growth opportunities without delay. Invoice financing can also provide relief during times of emergency, such as natural disasters that damage inventory or any disruption from suppliers or bankruptcy of key customers. Lenders typically prefer businesses with strong financial histories and diverse customer bases, and may require personal guarantees in order to secure funding. Furthermore, lenders will assess existing debt obligations to determine if your business can repay its loan obligation in full.
Before seeking invoice financing, be sure to compare rates and fees in detail in order to find the most cost-effective solutions.
Real Estate Loans
Evergreen loans (commonly referred to as sustainable financing) provide green businesses with access to capital they need for environmentally-friendly activities such as reforestation efforts or renewable energy projects. Accelerators can accelerate the transition towards a net zero carbon economy by providing necessary capital. They may also help attract investors and strategic partners who prioritize sustainability and environmental impact as part of their agenda. Evergreen loans provide an avenue for international cooperation by allowing investors from various nations to pool their resources for environmental projects in vulnerable regions – for instance funding large-scale reforestation efforts together.
Casual Loans
Casual workers may benefit from casual loans, which are unsecured personal loans designed specifically to cater to those without traditional proof of income. Funds will be directly deposited into your bank account so you can spend it how you please – just meet your repayment commitment each week, fortnight or month! Casual workers may also look into low-doc home loans which allow them to qualify for mortgages without providing documentation with typical proof of income requirements – although they usually incur higher interest rates.
- Unlock the Secrets to Cannabis Banking – A Must-Read Guide
Cannabis businesses operating legally require banking services. Most banks do not provide them due to additional monitoring, due diligence requirements, and staffing needs associated with cannabis banking services.
Instead, growers, dispensaries and ancillary businesses often must manage huge sums of cash – creating risks such as theft, skimming and robbery – but with proper approach and strategy secured banking options are achievable.
1. Know the Rules
Legal cannabis businesses are growing quickly across the nation, while federal banking regulations lag behind. Due to anti-money laundering regulations, financial institutions often remain reluctant to work with this sector, leaving legitimate, law-abiding businesses to operate solely using cash, which poses risks both to customers and employees alike.
To address this complex situation, ICBA supports the SAFE Banking Act. This bill would enable banks to provide basic services to cannabis-related businesses without fear of government or regulatory reprisals.
This bill would ensure that industry businesses are held to account for their business activities, making them more transparent and less likely to participate in illegal activity. Even if an institution opts not to offer cannabis banking, its BSA officers must understand how to assess risk accurately and adapt policies appropriately – for instance when considering hemp/CBD related accounts it must refer back to state/local laws when making risk evaluation decisions.
2. Be Prepared
Cannabis banking can be complex and time consuming. Financial institutions must be able to demonstrate that each dollar of revenue generated from legal sales; additionally they must meet federal and state reporting requirements and submit tax reports as required. All this takes up both time and resources – which explains why financial institutions charge cannabis accounts a fee.
The SAFE Banking Act would ensure that federal regulators would not take adverse actions against banks that provide services to state-legal marijuana-related businesses (MRBs). While it has passed several times through the House of Representatives, it has yet to reach the Senate floor for voting.
Cannabis operatorss can prepare themselves for banking by demonstrating financial health and handling cash responsibly, being open with potential bank partners, and working with an institution that understands cannabis. Green Check Connect helps FIs build cannabis banking programs through our marketplace of verified operators and suite of tools designed to make onboarding smoother for both parties involved.
3. Demonstrate Financial Health
Financial transactions such as electronic payments, money transfers and ACH have become more widespread, necessitating businesses to use electronic platforms instead of cash for transactions. Cannabis banking facilitates these digital transactions while increasing record keeping efficiency as well as meeting tax and legal compliance. Furthermore, its increased efficiency of payments could help dispensaries attract additional investors.
Even though marijuana is legal in an increasing number of states, its federal illegality makes accessing financial services difficult for cannabis-related business (CRB). Banks and credit unions remain reluctant to work with CRBs because they fear breaking the law by doing so.
To overcome lenders’ hesitation when working with marijuana-related businesses, lenders need to fully comprehend both risks and rewards associated with working with such enterprises. Abrigo’s team of former bankers and BSA Officers can assist your institution with developing policies to stay compliant when providing cannabis-related banking. Check back here regularly for on-demand webinars featuring Abrigo!
4. Be Transparent
Cannabis is still a relatively young and emerging industry, and banks understandably remain wary about providing banking services to cannabis businesses that operate legally within state borders. Most financial institutions that do provide such services remain discreet about it and keep a low profile when offering them.
Banks and credit unions that choose to work with CRBs must still abide by anti-money laundering (AML) laws, perform extra customer due diligence checks and report suspicious activity reports.
Marijuana and hemp-related businesses (MRBs) continue to thrive despite federal prohibition, yet without banking options most legal, fully compliant MRBs operate solely on cash; this poses both regulatory difficulties as well as security threats to millions working in this sector. When these MRBs gain access to safe banking services that work reliably for everyone involved – everyone benefits! To speed up this process it’s essential that businesses be transparent during application procedures – having all required documents organized can speed things along significantly; click here for our guide on preparing cannabis banking application procedures!
- Cannabis Banking: The Key to Unlocking Industry Growth
As 36 states now permit cannabis use, financial institutions cannot ignore this rapidly expanding industry – but must also be prepared for its unique compliance challenges.
For optimal risk mitigation, banks should define their risk appetite with banking CRBs and create systems to prioritize compliance. This may involve using AML software to detect suspicious transactions as well as KYC solutions that efficiently onboard and verify customers.
Legality
Legality is an issue of great concern to the cannabis banking industry. Although state-sanctioned businesses should have access to traditional banking services, federal prohibitions remain an obstacle.
Due to regulatory enforcement and potential reputational damage concerns, many bankers have been reluctant to work with cannabis clients; however, due to an increasing demand for banking services they are reconsidering their stance.
Banking cannabis clients is costly, as it requires additional staff to comply with bank secrecy and anti-money laundering laws. One banker could oversee as many as 30 cannabis customers compared with regular business.
Cash-only solutions pose operational issues for cannabis businesses, including increased safety risks associated with robberies and theft, tracking expenses accurately for tax filing purposes and providing employees with adequate retirement plans (401(k).
Regulations
As more states legalize marijuana, banks are looking for ways to support this growing industry. Unfortunately, federal laws and banking regulations present many hurdles; banks risk prosecution for money laundering if they work with cannabis-related businesses (CRBs), even when state laws allow these operations legally.
Although cannabis businesses have experienced considerable de-stigmatization and steady progress toward legalization in state after state, most federally chartered banks continue to reject them as viable customers, forcing companies to keep large sums of cash on hand – leaving them exposed to theft or other crimes.
To combat the issue, some states have implemented closed-loop payment processing systems wherein the state acts as the payment processor. This enables states to monitor and track tax payments from dispensaries as well as purchase payments from consumers more easily while eliminating cash handling which poses security concerns for employees and customers alike. Banks should assess risks by tiering cannabis clients according to risk; Tier 1 represents those considered the lowest.
Technology
Prioritizing compliance can make banking accessible for cannabis businesses, ensuring adherence with regulations and lowering risks associated with fines or damage to reputation; further enabling efficient growth while drawing investors.
Cannabis businesses that lack access to traditional bank services have often been forced to operate all-cash, making their operations vulnerable to theft and crime. Now there is hope: federal lawmakers have proposed the SAFE Banking Act which creates an exemption that enables financial institutions to actively bank cannabis-related businesses.
Such solutions would enable these institutions to accept deposits and lend money without fear of violating CSA or anti-money laundering laws, and could codify into law the stringent know-your-customer standards already required by FinCEN guidelines. Nonetheless, their effectiveness relies heavily on regulatory changes, industry collaboration, and ongoing technological improvements.
Compliance
As more states legalize cannabis, financial institutions need to understand its implications. Although cannabis remains illegal at a federal level, banks can still service marijuana-related businesses (CRBs) provided they abide by certain procedures and comply with suspicious activity monitoring requirements.
ICBA supports legislation which would create an effective safe harbor from government and regulatory reprisal for community banks serving Cannabis Retail Businesss (CRBs). Such protection should extend to “ancillary” services provided such as commercial landlords, accounting firms, utility providers and others who may receive payments derived from cannabis sales proceeds.
Last week, bipartisan senators introduced the SAFE Banking Act as a positive step in the right direction. But it must be kept in mind that this bill only provides limited bank access for marijuana businesses; true solutions lie with federal authorities and their banking industry counterparts.
- Navigating the Legal Landscape of Cannabis Banking
Robbers in movies typically leave behind bags of cash marked with an indelible ink signature; state-legalized marijuana-related businesses typically only possess cash as means of transaction.
Cannabis companies with revenue that must be stored in cash have an extreme difficulty accessing banking services, leaving their revenue vulnerable to criminality. But could the SAFER Banking Act change that?
Legality
Federal legislation was recently proposed that would help marijuana-related businesses access banking services they require. Known as the Secure and Fair Enforcement Regulation Banking Act (SAFER), this bill could alter how banks, credit unions, insurers and other financial institutions do business with cannabis-related businesses.
If it were to pass, this bill would prevent the Treasury Department’s Financial Crimes Enforcement Network from discouraging or prohibiting depository institutions from providing banking services to cannabis-related businesses and codify FinCEN guidance on “BSA Expectations Regarding Marijuana-Related Businesses.” However, although exempted by law from certain requirements that otherwise apply in other highly regulated industries (like know your customer standards and ongoing suspicious activity monitoring), certain requirements remain that remain for these institutions as part of this bill.
MRBs seeking bank accounts should prepare an exhaustive set of documentation that they can share with potential banks, and form close ties with their banker in order to avoid any red flags that may trigger a BSA review or forfeiture action by the federal government.
FinCEN Guidelines
New York state-chartered banks and federally chartered and supervised credit unions may bank state-licensed cannabis and marijuana-related businesses if they implement an appropriate policy and technology to manage BSA compliance and risk effectively, including making sure customer accounts do not tie to CRBs, conducting risk-based customer due diligence procedures, and monitoring transactions that align with each institution/entity’s business plan, risks, and management capabilities.
As the SAFE Banking Act progresses through Congress, financial institutions will have an opportunity to improve their cannabis-related policies and conduct an in-depth risk evaluation of these accounts. This evaluation should identify activities with lower risks versus those with greater risks; ensure compliance with Cole Memo enforcement priorities or any rescinded Guidance regulations; identify red flags; review documentation and carry out ongoing transaction monitoring as a part of ongoing transaction monitoring – ultimately the cannabis industry cannot flourish without access to safe banking.
Risk Assessment
Due to federal prohibition against marijuana, banks and financial institutions that work with cannabis businesses face a higher risk of money laundering (a federal crime) than when working with other industries. This is because transactions conducted by marijuana businesses involve large sums of cash which may pass for legitimate business activity when reviewed by anti-money laundering experts.
As such, many financial institutions remain cautious of working with cannabis companies or at best limit their relationships to deposit-only services. But as stigmatization recedes and state legalization increases, more banks are creating programs tailored specifically towards this industry.
As part of their risk analysis when working with MRBs, potential institutions should assess state legality as well as reputational risks associated with being known as “weed banks.” BSA officers should review any prior SAR filings related to MRBs that have occurred and assess the likelihood of additional filings in the future.
Regulation
As state-level legalization spreads, financial industries cannot overlook this lucrative market sector. Unfortunately, federal law still stands as an impediment to safe banking for cannabis companies; though DOJ rescinded their Cole Memo, FinCEN guidelines remain effective ‘know your customer’ directives that limit banking options available.
There are currently legislative efforts afoot that could facilitate reform. The SAFE Banking Act seeks to shield banks, credit unions, lenders and other financial institutions from any legal repercussions when engaging with state-legal marijuana businesses or providers; additionally, this bill extends beyond FinCEN guidelines by covering payment processing services, mortgage lending agreements and insurance (in addition to deposit accounts).
Even with these obstacles in place, many community banks remain willing to provide MRBs with banking services if approached correctly. Clear communication with clients will ensure they understand what’s expected of them – this approach should prevent them from getting bogged down with banking jargon or legalese and could ultimately make more likely sign on as clients.
- The Evolution of Cannabis Banking – From Taboo to Mainstream
While many banks remain unwilling to work with cannabis-related businesses (MRBs), credit unions and community banks have begun venturing into this emerging market. Legislation has also been introduced in order to lessen any financial obstacles MRBs face.
Banking CRBs entails significant risk, yet by creating and adhering to an AML/CTF program and adhering to stringent compliance protocols a strong AML/CTF program can protect from reputational, legal and regulatory damage.
From Taboo to Mainstream
Banks tend to shy away from banking marijuana businesses. Federal prosecution threatens the industry, forcing most state-legal cannabis-related businesses (CRBs) that operate legally to operate solely with cash transactions instead of tapping mainstream financial services for financing purposes. This puts them vulnerable to criminal exploitation as well as restricting them from accessing mainstream financial services.
Thankfully, however, things may be changing for the better. ICBA has been pushing to pass the SAFE Banking Act, which would ensure federal regulators cannot threaten to withhold deposit insurance or downgrade loans made to banks that work with state-legal CRBs; Green Check Verified was founded to assist banks navigate this risky landscape; Green Check Verified’s services have also emerged to assist. But banks must still do their research and stay compliant with federal laws while being aware of five myths regarding banking marijuana-related businesses.
FinTech Solutions
FinTech, or financial technology, has become an invaluable tool in solving the banking issues facing the cannabis industry. These solutions are tailored specifically for this sector to increase compliance and operational transparency while encouraging growth and financial inclusion within an underserved market.
FinTech companies are helping CRBs reduce their reliance on cash transactions with solutions such as digital wallets that connect directly to bank accounts, enabling consumers to purchase products and services from CRBs using virtual currency.
FinTech tools such as anti-money laundering software automate compliance processes to eliminate human error, meeting regulatory requirements. KYC solutions facilitate efficient customer onboarding and verification procedures to adhere to AML and CFTC regulations while mitigating risk through decreasing the number of accounts tied to CRBs.
Regulatory Technology
Cannabis companies require access to financial services essential for daily operations, including deposit-taking, payment processing and merchant services. Without this support, their ability to operate efficiently and build trust among consumers and stakeholders would be severely limited.
FinTech solutions are responding to this problem by creating tailored compliance frameworks and cutting-edge technologies – such as blockchain-powered seed-to-sale tracking systems that ensure transparency and immutability.
States play an essential role by passing legislation to create closed-loop payment processing systems that ensure tax payments from cannabis corporations and purchase payments by consumers are sent directly to states for processing, eliminating cash handling. This helps minimize money laundering and terrorist financing activities while as cannabis-related business (CRB) transactions become mainstream banks must continually evaluate their risk tolerance in order to best support new customers.
Payment Solutions
Cannabis business owners want their company to be treated like any other, and this includes accessing banking services. Banking services enable cannabis entrepreneurs to invest in growing their company – hiring more employees, carrying new brands at their dispensaries or opening additional locations – opportunities which benefit communities as they expand.
Banks can assist cannabis businesses by offering ACH payment solutions. Furthermore, banks can assist by providing AML software and KYC solutions that effectively screen for risk. Finally, banks may provide seamless cryptocurrency on-ramps that make transitioning back into fiat currency easier for cannabis businesses – thus decreasing cash-flow risk while protecting them from volatile virtual currencies and giving more flexibility when planning and forecasting profit streams.
Developing a Solid Banking System
Cannabis industry transactions are becoming an increasingly lucrative venture and, while they typically take place using cash transactions, financial institutions (FIs) that choose to provide CRB services must ensure they update policies and procedures to reflect this decision and ensure BSA compliance. FinTech firms that specialize in regulatory technology offer advanced software systems that provide greater financial transparency while verifying adherence to complex compliance protocols while simultaneously permitting electronic commerce transactions reducing dependence on cash.
State-level laws such as SAFE Banking legislation can also provide valuable assistance, preventing federal regulators from taking adverse actions against banks that provide services to state-legal MRBs. Banks which successfully balance compliance work streams while offering comprehensive banking solutions will find success in this new market – competition is fierce!