There’s a divide between federal and state perspectives on this topic, which puts banks in an awkward position.
By Rebecca Rivas, Missouri Independent
Missouri’s marijuana business will face fewer barriers when it comes time to bank, but all new employees and contractors must be fingerprinted under a law signed by Gov. Mike Parson, a Republican, signed a bill on Thursday.
Few banks in the United States serve cannabis businesses, their owners or even their auxiliary partners. Most do not want to deal with a company that sells an illegal product. This is true in states where marijuana has been legalized.
The Governor signed a bill aimed at improving public safety. It allows, in part, the Department of Health and Senior Services (which oversees the state’s marijuana program) to share inspections and information with cannabis businesses.
Because the state agency hasn’t had this authorization previously, banks have been repeating the work DHSS has already done to meet federal financial guidelines–something not all banks are equipped for.
In March, Jim Regna told legislators that, instead of performing our own inspections, it would be “very, very helpful” for the bank to receive this information from the Department of Health and Senior Services. This way, the program could be fluid and we’d remain in compliance with federal regulations.
A background check will be mandatory for all employees in the Missouri cannabis industry.
According to the Missouri Highway Patrol’s criminal background check, under the amendment to the Constitution that was passed by voters in November legalizing recreational marijuana only cannabis company owners were required to provide their fingerprints. Employees are currently subject to a background investigation, but not fingerprinted.
The legislation requires fingerprinting of all employees, contractors, and volunteers in cannabis businesses.
Both DHSS, and the Missouri Cannabis Trade Association (which represents marijuana professionals and businesses), supported this provision.
A cannabis human-resources specialist told The Independent that fingerprinting could delay the hiring of new cannabis workers, even though the State is experiencing a boom in job growth.
This provision was also part of another bill, that Governor signed on Thursday. It makes changes to the background checks for schools and child-care facilities.
Supporters of this provision said that helping cannabis businesses gain access to banking was a matter of public safety. The major credit card companies do not allow cannabis purchases. All cannabis transactions are made in cash.
Jackson Hataway told The Independent that there is a divide between federal and state perspectives on this topic.
This divide has left many businesses without banking, at risk of robberies on a regular basis and at the mercy companies that offer banking services with exorbitant charges. Some of these firms have been found to be in violation of federal laws.
The association advocates for the federal SAFE Banking Act. This is proposed legislation that aims to allow banks to conduct business in states where marijuana has been legalized. The bill has been passed by the House more than once, but not yet.
He said: “So, we are stuck in this current quagmire,” where a lot states like Missouri have businesses that put pressure on them to create a safe and secure banking environment. If they are all cash, then they’re risky.
This article was originally published by Missouri Independent.
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