Cannabis Business Banking in Wisconsin
- Wisconsin Cannabis
- Cannabis Business in WI
- Cannabis Business Banking in Wisconsin
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Cannabis Banking in Wisconsin
Wisconsin offers a complex backdrop for cannabis businesses. While hemp with low THC content is legal, and the state operates a limited medical CBD programme, both recreational and medical marijuana remain prohibited. This legal ambiguity creates additional hurdles for businesses seeking reliable banking solutions.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in WI | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| BMO Bank | Bank |
| Chase (CBD Only) | Bank |
| First Citizens Bank | Bank |
| First National Bank of Pasco | Bank |
| Green Check | FINTECH |
| Safe Harbor Financial | FINTECH |
Navigating Banking Requirements in Wisconsin
Given the complexities, partnering with a bank experienced in cannabis finance is essential. Such banks implement tailored procedures to comply with federal and state regulations while serving cannabis businesses. Key considerations for businesses include:
- Thorough Vetting: Banks will carry out detailed due diligence to ensure your business operates within legal parameters.
- Compliance Programmes: Institutions must adhere to Anti-Money Laundering (AML) and Bank Secrecy Act (BSA) protocols to monitor and report transactions.
- Reporting Obligations: Banks are required to file Suspicious Activity Reports (SARs) for cannabis-related transactions, even when these are lawful under state law.
Payment Processing: A Persistent Challenge in WI
Without access to traditional banking services, many cannabis businesses are forced to operate in a cash-only environment. This creates significant issues, including:
- Security Risks: Handling large amounts of cash increases the likelihood of theft or robbery.
- Operational Hurdles: Cash-based operations are costly and time-consuming to manage.
- Growth Limitations: Without access to loans or electronic payments, expanding a business becomes challenging.