What is the difference between direct and indirect cannabis-related businesses?
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An “indirect marijuana business” is one that derives any of its gross revenue from sales to Direct Marijuana Businesses of products or services that could reasonably be determined to support the use, growth, enhancement, or other development of marijuana. A “direct marijuana business” is one that grows, produces, processes, distributes, or sells marijuana or marijuana products, edibles, or derivatives, regardless of the amount of the activity.
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Why are the fees higher on Cannabis Banking accounts and services versus regular business accounts?
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Banks that choose to offer cannabis banking take on additional regulatory requirements, reporting and risk management practices, and due diligence in order to offer and maintain a well-managed program. These extra measures mean the bank must attain additional monitoring tools, staff training and support which causes significant extra expense.
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