Louisiana has made strides to alleviate banking challenges. In 2020, the Louisiana Office of Financial Institutions (OFI) issued guidance urging banks to adhere to federal recommendations while working with cannabis-related businesses. This includes implementing stringent anti-money laundering protocols and conducting detailed due diligence. While the OFI’s efforts provide a roadmap, compliance remains a costly and labor-intensive process for most institutions.
Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in LA | Type of Financial Institution |
---|---|
Amalgamated Bank | Bank |
Chase (CBD Only) | Bank |
Element Federal Credit Union | Credit Union |
Farmers Bank & Trust | Bank |
Green Check | FINTECH |
Herring Bank | Bank |
Safe Harbor Financial | FINTECH |
For banks and credit unions, the decision to work with cannabis businesses is fraught with risks:
Business | Cash | Credit Cards | ACH/E-Checks | Specialized Processors | Cryptocurrency |
---|---|---|---|---|---|
Dispensaries | Widely used | Limited (via cannabis-friendly providers) | Often used | Cannabis-specific | Limited |
CBD Shops | Sometimes | Frequently available | Common | Some high-risk providers | Rare |
Hemp Shops | Occasionally | Readily available | Common | Rarely needed | Rare |
At the federal level, the SAFE Banking Act continues to garner attention. If passed, the act would prohibit federal regulators from penalizing financial institutions that serve state-legal cannabis businesses. Supporters, including industry advocates and state financial regulators, argue the act could provide a safer, more stable framework for cannabis banking. However, the legislation’s uncertain future leaves stakeholders without a clear solution.