CBD and Hemp Banking: A Complete Guide

Although banking is a huge part of running any business, it’s especially important for companies involved in the legal cannabis industry. After all, the lack of legal clarity around cannabis makes it hard for these companies to get the loans they need to grow and thrive. However, that doesn’t mean you can’t find a bank that will help you out—plenty of banks are willing to take on your business.

When you’re a business owner, it can be hard to stay up-to-date on the latest trends and regulations. But if you’re in the hemp or cannabis industry, it’s especially important to know what you need to do to keep your business running smoothly.

Fortunately, that is starting to change thanks to some forward-thinking financial institutions who have taken the initiative to open up accounts for those using CBD products—and those hoping to do so in the future.

In this post, we’ll discuss the basics of CBD banking, including how to find a bank that offers CBD banking services, what types of accounts they offer, and what they charge for them.

What is CBD and hemp banking?

CBD, or cannabidiol, is a compound found in hemp. CBD has many medical benefits and can be used to treat pain, anxiety, and other conditions.

Hemp banking is the process of storing and moving funds related to your business as a hemp company. You can get a checking account for your business at Customers Bank, or you can choose to work with an online payment processor like Fincann.

When dealing with financial institutions such as banks, it’s important to differentiate between CBD banking and cannabis banking. Cannabis banking refers to all funds related to marijuana, including both legal and illegal businesses. Cannabis banking is still illegal in most states because of federal prohibition laws against marijuana.

How is CBD and hemp banking different from cannabis banking?

CBD and hemp banking is different from cannabis banking in a few ways.

First, the drug laws surrounding CBD don’t have the same legal ramifications as those that apply to cannabis. This means that banks can work with CBD businesses without fear of running afoul of federal law.

Second, there are no mandatory reporting requirements for CBD business transactions like there are for cannabis businesses.

Third, the FDIC does not say that banks cannot work with cannabis businesses. Rather, it has said that it will not insure any accounts or transactions involving them. This means that banks can do business with cannabis companies as long as they are not insured by the FDIC. However, they may be subject to other federal regulations depending on what they do with their money.

Finding CBD-friendly banks

Finding a CBD banking solution can be a complicated task. If you’re just getting started, you might be wondering where to start.

The first step in finding a CBD-friendly bank is to understand what makes it so hard for hemp businesses to find one.

There are three main reasons why most banks do not want to work with hemp businesses:

• The legal status of CBD as a Schedule I drug under the Controlled Substances Act (CSA). This means that it has no accepted medical use in treatment and therefore cannot be sold or transported across state lines.
• The lack of clarity around the legality of CBD under federal law. Although it is legal in all 50 states, there are many gray areas that make it difficult for banks to know how they should treat transactions involving CBD products or companies. This can also cause problems with security deposits and other types of deposits related to financial institutions like credit unions and savings & loans associations (S&Ls).
• The fact that many banks are owned by large financial institutions like Wells Fargo and Bank of America, which have a policy against working with the cannabis industry due to concerns about losing federal government contracts or being prosecuted under federal law themselves for supporting an illegal business enterprise.

This means that cannabis companies are left with few options when it comes to banking. Many turn to cash-only transactions or working with credit unions and other financial institutions that are willing to work with the industry. However, these options are not ideal for a number of reasons.

Cash-only transactions can be dangerous for businesses, as they make them more vulnerable to robbery and theft. Credit unions have limited services and can only offer basic banking products like checking accounts and debit cards; they cannot provide loans or other financial products that cannabis companies may need, such as merchant services.

Future of CBD banking

The future of CBD banking is bright. It’s not perfect yet, but it’s growing and improving every day as more people become interested in CBD products and the laws surrounding them evolve to reflect this new interest. As more banks open their doors to CBD businesses, we’ll see more options for safe storage and access to funds that will make it easier for everyone involved–from growers and manufacturers all the way down to customers looking for relief from their ailments or conditions.

Banking professionals who want to know more about CBD and hemp banking should check out BankersHub’s cannabis banking certification course. The course covers everything from the basics of banking cannabis, to more advanced topics like risk management and compliance.

The course is designed for people with little or no experience in this area, but also provides valuable information for those hoping to expand their expertise.