Need to open a bank account for your cannabis business? Finding a bank account geared towards cannabis businesses can be extremely challenging. Fortunately, there are certain actions that cannabis businesses can take to make the process smoother and increase their chances of securing an account. FirmEU is specialized in opening bank accounts for high-risk businesses, and so also for your cannabis business. If you want to get in touch with us now, contact us here.
Navigating the banking system as a cannabis business can be tricky. Banks are subject to heavy regulations, so any accounts related to cannabis may be subject to further scrutiny. Therefore, it is important to be prepared when seeking approval from banking compliance officers. This should include being aware of the due diligence process that is involved in order to ensure successful approval for cannabis business banking. FirmEU can assist you with opening a bank account for your cannabis business. FirmEU has an extensive international banking network specialized in high-risk bank accounts, just like cannabis businesses.
Tips on how to open a bank account for your cannabis business:
- When it comes to obtaining a bank account for your cannabis business, it is essential that you are upfront and honest with the financial institution. Misrepresenting the nature of your business is unethical, and could lead to legal ramifications if you are discovered. Additionally, when dealing with large amounts of cash from your cannabis business, a bank may be able to detect the transactions. By being honest about the nature of your business activities when opening a bank account, you can ensure that you remain in compliance with all legal regulations regarding cannabis businesses.
- Before your cannabis business can apply for banking services, you’ll need to make sure your founding and governing documents are in order. These documents include operating agreements, Articles of Incorporation or Organization, and Employer Identification Numbers (EINs). When creating the documents, be sure to clearly define the owners, operators, and their respective ownership interests. Having these foundational documents ready will help to demonstrate an understanding of the legal regulation of cannabis businesses.
- To open a cannabis business banking account, it’s important to create an online presence through a website and profile. Many financial institutions require this as part of their “know your customer” checks for businesses. Making sure the information you present reflects professionalism and legal compliance is key in gaining approval for a banking account.
- When considering a cannabis business banking partner, it’s important to review one’s credit and criminal history. Banks are typically guided by federal regulations which encourage them to be wary of businesses that have associations with drug-related violations. Thus, for those with prior convictions, it would be prudent to research their potential banking partner to ensure that this does not pose an issue for them in the future.
Do you have a Cannabis or CBD business, and are you struggling with getting a bank account opened for your business? FirmEU can assist you with every step of getting your corporate cannabis bank account opened.
If you want to inquire about your cannabis business, or if you have any questions about our cannabis bank account opening services, then contact us here.
Check out our High-risk banking page or all the other bank account opening services we provide.