Cannabis Business Banking in Missouri
- Missouri Cannabis
- Cannabis Business in MO
- Cannabis Business Banking in Missouri
Related Pages:
Key Points
- New Legislation: Missouri passed a law to simplify compliance requirements and encourage financial institutions to support the cannabis industry.
Missouri's Progress in Marijuana Banking: New Legislation to Support Cannabis Banks
Missouri has taken a pivotal step in improving banking access for cannabis businesses by passing new legislation aimed at bridging the gap between cannabis businesses and financial institutions. This law enables state agencies, such as the Department of Health and Senior Services, to share regulatory and financial information about cannabis businesses with banks upon request. This transparency is intended to simplify compliance requirements for financial institutions, encouraging them to support the growing cannabis industry in Missouri.
- The state is home to more than 50 cultivators and over 200 marijuana dispensaries.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in MO | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| BMO Bank | Bank |
| Chase (CBD Only) | Bank |
| Element Federal Credit Union | Credit Union |
| Farmers Bank & Trust | Bank |
| First Citizens Bank | Bank |
| Focus Bank | Bank |
| Green Check | FINTECH |
| Herring Bank | Bank |
| Needham Bank | Bank |
| Regent Bank | Bank |
| Safe Harbor Financial | FINTECH |
| Shore United Bank | Bank |
- Are you a Missouri-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .
Contact a Banker To Discuss Your Business Needs
Reach out with any questions!Challenges Faced by Cannabis Banks in Missouri
Missouri banks face significant challenges in serving marijuana businesses due to state and federal law conflicts. Key issues include:
- Legal Risks: Cannabis's federal illegality risks violating anti-money laundering laws, deterring banks from the marijuana sector.
- Compliance Costs: Enhanced due diligence, transaction monitoring, and frequent SAR filings raise operational expenses.
- Operational Issues: Cash-based cannabis businesses increase security risks and complicate financial management.
- Legislative Uncertainty: The SAFER Banking Act offers potential relief, but its uncertain passage keeps banks cautious.
Tackling Payment Processing Challenges in Missouri's Cannabis Industry
- Cash Transactions: Common but pose security risks, handling inefficiencies, and scalability limits.
- Point of Banking (Cashless ATMs): Processes debit card payments as ATM withdrawals, rounded to the nearest dollar, but raises compliance concerns.
- ACH Transfers: Direct bank payments reduce cash reliance but require account setup, potentially deterring consumers.
- PIN Debit: Functions like standard debit transactions, offering familiarity and better compliance for cannabis banks.
- Cryptocurrency: Provides an alternative to traditional banking but faces price volatility, low adoption, and unclear regulations.