Staying informed on the cannabis industry can help organizations better mitigate cannabis-related risks.
While hemp and hemp-derived cannabidiol (CBD) are federally legal, other types of cannabis remain illegal at the federal level. However, expanding legalization at the state level means that cannabis-related businesses (CRBs) are increasingly seeking traditional banking services. Whether or not financial services organizations choose to bank CRBs, they need to stay up to date with ever-changing regulations, legislation, and the compliance environment. They also should consider their own risk tolerance, as the regulatory landscape of the cannabis industry poses a variety of potential obstacles that can bring increased risk.