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Marijuana Businesses in Missouri Face Challenges with Financial Institutions
Despite the legalization of recreational marijuana in Missouri, businesses that deal with the drug are facing obstacles when it comes to receiving help from financial institutions. The federal government still views marijuana as an illegal substance, which makes it harder for banks and businesses to meet federal scrutiny.
However, Missouri lawmakers are seeking to streamline this process by permitting state agencies to share marijuana licensing information with banks and credit unions. Jim Regna, CEO and founder of Triad Bank in St. Louis, believes that such information can help banks stay compliant with federal regulators while making the program more fluid.
Regna has publicly supported this notion by testifying in support of relevant legislation that would allow the Department of Health and Senior Services to share vital information such as background checks and inspections. The bill, sponsored by Republican Rep. Chad Perkins of Bowling Green and previously by Democratic Sen. Steve Roberts of St. Louis, has gained support from multiple parties including the Missouri Division of Finance, the Missouri Bankers Association, the Missouri Credit Union Association as well as MoCann Trade, which represents marijuana professionals.
Sharing Information Helps Fight Money Laundering
Sen. Steve Roberts explains that sharing DHSS licensing information with financial institutions can help banks and credit unions identify legal cannabis businesses and ensure that taxes are paid to the state. He notes that such information is essential to ensure compliance with the U.S. Department of Treasury’s analysis to combat money laundering and other financial crimes.
Perkins adds that the bill is about giving banking institutions some protection and transparency, especially those who want to provide services to marijuana businesses. He believes that this would encourage more support from people who might be skeptical of Amendment 3.
Marijuana Licenses are Changing Hands Frequently
Regna notes that one of the challenges with marijuana businesses in Missouri is that licenses are often changing ownership. This makes it difficult to keep up with inspections that are required to stay in compliance with federal regulations. Financial institutions are required to inspect every facility and licensee to ensure they are legal and reputable, and the Department of Health and Senior Services already does this. Hence, it makes more sense for DHSS to share relevant information with banks and credit unions rather than conducting fresh inspections by each financial institution.
Marijuana Businesses Feel the Strain of Paying for Inspections Twice
Another challenge for marijuana businesses is that they are required to pay for inspections twice: once with DHSS and another with financial institutions. However, the lack of banks providing services to marijuana businesses compounds the problem, and Regna urged the need for more banks to support the industry. He believes that the marijuana industry is only as strong as the banks and the other support that makes it successful and safe.
Conclusion
Missouri’s marijuana businesses are facing additional hurdles because of federal laws, but legislation that streamlines the sharing of information between the Missouri Department of Health and Senior Services, financial institutions and other agencies can bridge this gap. Such legislation would benefit marijuana businesses by ensuring that their information is shared consistently with financial institutions, which in turn can improve the safety and success of the industry.
