Banking & Financial Services Access

Obtaining access to depository services and cash-alternative payment methods can be a challenge for members of the cannabis industry. Vicente Sederberg LLP works with marijuana and hemp businesses, financial institutions, and governmental bodies to help our clients access the depository and financial services they need to be successful.

Through our mastery of cannabis regulatory compliance, extensive industry experience, and strong network of banking and credit union contacts, we have developed a deep understanding of the issues financial institutions consider when they are deciding whether to service cannabis-related clients. We know what they want to see and what they must avoid, and we have used this knowledge to provide guidance to banks and credit unions across numerous jurisdictions on how to minimize their risks when working with cannabis-related clients. We also employ it to assist all types of plant-touching and ancillary businesses in securing transparent and long-lasting banking relationships.

Our experience in the cannabis industry, combined with an in-depth understanding of the major credit card networks' policies on cannabis payments and the cash-alternative payment methods available to the cannabis industry further allow us to assist cannabis businesses in choosing the right solutions for them. In turn, we have also assisted various payment systems in creating cash-alternative solutions that do not implicate the current credit card networks' cannabis restrictions.

LEADERSHIP

Services

  • Analyze traditional and industry-specific financial services solutions available to marijuana and hemp businesses, including cannabis- and hemp-specific money transmitters
  • Examine payment systems and prepare in-depth analyses of these systems for financial institutions, banking regulators, and the FDIC
  • Advise cash-alternative payment platforms geared toward the cannabis industry on issues associated with network card payments for cannabis products
  • Provide guidance to entities seeking non-depository and industry-specific financial solutions
  • Assist cannabis- and hemp-related businesses in initiating and continuing communications with financial institutions to secure depository business accounts
  • Draft individualized introductory documents for businesses approaching financial institutions for depository accounts
  • Prepare internal policies and procedures to enhance cannabis and hemp businesses’ ability to obtain and retain accounts with traditional financial institutions
  • Counsel cannabis- and hemp-related businesses about merchant services
  • Enhance Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) and internal policies and procedures with cannabis- and hemp-specific guidelines, laws, and regulations

Experience

  • Secured business depository accounts for numerous multi-state cannabis and hemp operators
  • Acted as counsel to an international device manufacturer, enabling its cannabis-related affiliates to secure bank and credit union accounts in multiple jurisdictions
  • Represented a leading e-commerce company on its plans to expand into the cannabis and hemp sectors by creating onboarding and ongoing due diligence guidelines resembling those of a financial institution
  • Counseled a securities exchange with numerous cannabis and hemp listings regarding cannabis and hemp industry-specific financial service providers
  • Acted as counsel to a publicly-traded company with respect to the application of United States money laundering laws as related to hemp
  • Acted as counsel to a multi-state fintech operator in establishing a money transmission system for the cannabis industry

News

Charles Alovisetti to Present Cannabis Real Estate Financing CLE

Jul 1, 2021

The CLE, titled "Financing Cannabis-Related Real Estate: Structuring Options, Enforcement Issues, Regulatory Hurdles" will analyze legal and practical issues borrowers and lenders need to consider when documenting and funding a loan transaction secured by cannabis-related real estate.

What is a Cannabis REIT?

By Charles Alovisetti, Cassia Furman
Apr 23, 2021

To many in the cannabis industry, REIT is not a common acronym. Yet, as cannabis businesses seek ways to raise funds, REITs are coming up in more and more conversations.

In the Media