Although selling marijuana is now legal in 44 states and the District of Columbia, doing business as a legal marijuana company is a logistical nightmare. That's because marijuana is still federally illegal, and banks open themselves up to potential seizure by the FDIC if they take money that is the result of a federally illegal act.
Despite the fact that President Obama has given financial institutions the green light to serve the legal cannabis industry (so long as they monitor closely for potential money-laundering and other violations), most banks won't work with the $6.7 billion marijuana industry. The result is that 70 percent of cannabis companies don't have a bank account. The few banks that do take on marijuana clients do not advertise what they're doing.
While 30 percent of cannabis companies have a bank account, no cannabis company can accept debit or credit cards, because companies like Visa and MasterCard will not give the industry merchant accounts until federal law changes.
Globility Link, Inc. does not mask or alter the businesses we serve. Both the banks and the providers know who their customer is. This is the critical piece of the puzzle merchants need to understand.
Enter Globility Link, which was founded by a team of Merchant Services Consultants and Compliance Entrepreneurs in 2014, has successfully helped dispensaries be served by a number of banks throughout the United States.
The secret sauce is a compliance platform that audits a cannabis company in its entirety, shifting through documents and state licenses, financial statements, tax returns, property leases, and more, to ensure it is legal and legitimate.
44 States have legalized cannabis (either medical or recreational or some variation of both).
Federal Law still holds cannabis as a Schedule I illegal drug, even though the Fed has published the 2014 FinCEN Guidelines.
The Cole Memo and the Rohrbacher-Farr Amendment stop federal agents from pursuing cannabis operators who are compliant with State law.
FDIC insured banks cannot open bank accounts for cannabis operators.
Due to the above issues, this has precluded banks like Wells Fargo, Chase or Bank of America from providing bank accounts to cannabis operators, thus making this a cash-only business. This represents a huge public safety problem and is a magnet for unwanted activity. We have created an elegant solution for the entire cannabis industry which is nothing short of revolutionary. In short, we have solved the cannabis banking problem!
Globility Link provides:
A means to move legacy cash into the traditional banking system.
The ability to pay employees, vendors and tax authorities through customary banking methods.
Traditional normalized banking solution to eliminate operating in cash.
Competitive annual return on deposits