Citibank wants to take advantage of marijuana companies

Bank of America HMi2Xu
Mar 14 4 Comments

Read an interesting article about how Citibank sees potential in the cannabis industry. The Cannabis industry is definitely a growing market with lots of potential. What would be the drawbacks for allowing cannabis companies to open accounts or get loans in states that have legalized mj? Don't really see what the issue is?


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TOP 4 Comments
  • New / Eng

    New Eng

    Senior Software Engineer. 15yoe. Seattle. $205k TC
    Since marijuana is a federally controlled substance, commerce between two states that involves it or the proceeds from it -- even two adjacent states that have legalised it -- is a federal felony. Creating per-state infrastructure to ensure that money held in an account can be determined to remain in-state so as to satisfy the above is non-trivial.
    Mar 14 0
  • US Bank / Finance

    US Bank Finance

    Goldman Sachs, JPMorgan Chase
    There are three ways to make a living in this business. Be first, be smarter, or cheat.
    Until federal restrictions on the drug itself are lifted, it is a violation of AML/KYC and certain sections of PATRIOT Act. You cannot bank money from the industry here as of yet. Because while some states allow it, it’s if so facto drug trafficking
    Mar 14 0
  • Symantec / IT

    Symantec IT

    Executive serving the Operations and IT industry for almost two decades out of the Bay Area. My passion is growing people into their fullest potential.
    It’s a pretty large concern for dispensary and growers/processors and they presently have no means to manage and store their money that is federally insured and legal. No night deposit drops, no ATM purchases, no protection from robberies, etc. they literally have to carry masses of cash around.

    To be the first financial institution that helps enable even in-state banking and services would be big for these customers and could put Citi at the head of the pack when it comes to reaping profits from the cannabis industry. It won’t be trivial, for sure.

    It’s a matter of time for fed to drop the scheduling, better to be in the Pole position.
    Mar 14 0
  • Uber uber>lyft
    ... by selling cupcakes and brownies in their lobbies?
    Mar 14 0