“This Bill also allows agencies to share information to ensure that banks or credit unions can ensure the business is legal cannabis, paying taxes to Missouri.”
By Rebecca Rivas, Missouri Independent
Missouri marijuana businesses will have less difficulty accessing banking services under the legislation passed 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 Missouri House passed a Bill on Friday that allows marijuana businesses to sign a consent form allowing state agencies to share information about their licenses and inspections with their financial institutions.
The federal government has advised banks they can offer services to the marijuana business if they adhere to guidelines set forth by the Financial Crimes Enforcement Network.
FinCEN mandates that banks inspect each facility and licensee in order to ensure they are legal and reputable. This is something the Department of Health and Senior Services already does.
Regna, in March, told the lawmakers that it would be “very, very helpful” to receive this information from the Department of Health and Senior Services in order to keep the program moving and in compliance with federal regulations.
The provision was part of a wide-ranging public safety bill that also includes requiring fingerprint background checks for all cannabis employees and contractors–language that also passed on a separate bill on Thursday.
The bill will now be sent to the Governor’s desk.
Since 2021, Sen. Steve Roberts of St. Louis has been sponsoring the bill. He says that it has always passed through the Senate committee, but has stalled ever since. The bill that Roberts sponsored this year passed the House on Friday and still needs one vote from the Senate.
Roberts stated that the financial institutions need the license information to comply with U.S. Treasury Department’s analysis in order to combat money laundering.
Roberts, during an hearing in February, said that “this bill allows agencies to share information so that banks or credit unions can ensure the business is legal cannabis, paying taxes to Missouri.”
Chad Perkins, a Republican Representative from Bowling Green, also sponsored legislation in this year. He said during a hearing in March that the bill was intended to give banking institutions “some” protection if they choose to provide services to marijuana-related businesses.
Perkins stated, “If you had doubts about Amendment 3 in the past year, then you might think that these banks have a legal right to more transparency.” “I would think that you would want to support it.”
The Missouri Cannabis Trade Association represents marijuana professionals and businesses. The Missouri Bankers Association, Missouri Credit Union Association and Missouri Division of Finance have all supported the bill.
Supporters said that helping cannabis businesses gain access to banking was also a matter of public safety. The major credit card companies do not allow cannabis purchases. All cannabis transactions are made in cash.
Jackson Hataway is the president of the Missouri Bankers Association. He said, “There’s a divide between the federal perspective and the state view on this topic which puts banks in an awkward position.”
This divide has left many businesses without banking, at risk of frequent robberies, and at the mercy companies that offer banking services with exorbitant charges. Some of these have been found to be in violation of federal laws.
The association advocates for the federal SAFE Banking Act. This is a 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: “We remain in this current quagmire in which we are stuck.” “There are many states, like Missouri, that face upward pressure from business to create a safe and secure banking environment. If they are all cash, then they’re risky.
The Missouri Independent first published this story.
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The article Missouri Lawmakers Send Bill Enabling Marijuana Businesses’ Access to Banking To Governor’s Desk first appeared on Marijuana Moment.
