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MBank Moves Into Financial Services For Cannabis Companies in Colorado

Oregon-based MBank has just moved into the
Colorado cannabis business, now serving both the recreational and medical
markets. The move comes as several banks, particularly on the West Coast, begin

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regon-based MBank has just moved into the
Colorado cannabis business, now serving both the recreational and medical
markets. The move comes as several banks, particularly on the West Coast, begin
to slowly move toward a change of heart regarding cannabis related cash.

The Department of Treasury still lists such
activity on the Suspicious Activity Reports it requires all banks to keep as
part of federal compliance measures. 
Last year there were a total of 105 banks on that list.  Most banks that offered cannabis related services
to individual customers also did not advertise this service.

This year, it looks like things might be
different due to political reform across the country.  The main reason the banking industry has
remained so reluctant about offering banking services of any kind to a rapidly
exploding industry that is still largely cash-based, is because of the fear of
running into harsh criminal and/or money laundering prosections. As segments of
the country begin to shift ideas, banks follow suit.

The problem of accessing regular business
banking services remains particularly acute for smaller businesses, many of
whom also face added scrutiny from online financial services such as Paypal— which
has a history of denying merchants services even if the activity is state
legal.

As most advocates, including cannabis
industry lobbyists agree, the only way to forestall banks’ concerns on this
front is to change both the Schedule I designation of both cannabis and hemp as
well as remove the ability of prosecutors to proceed on financial transaction
cases that involve state-legitimate cannabis firms. Once these things happen,
we will see more opportunities for legitimate business to flourish and handle
their funds in an equally legitimate way.

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