Cannabis Federally Classified Illegal Banking Challenges
Industry trained Accountants specializing in tax laws governing cannabis businesses in New Jersey are critical support to ensure that book-keeping is sound. License holders are subject to frequent audits and significant penalties can be levied for non-compliance.
The accounting is highly specific to businesses moving large amounts of currency as transactions are conducted in cash or debit card only. Security is another essential component to any dispensary. And then of course there are the Bankers. Because cannabis is still federally classified illegal, banking is a challenge.
“Denise DiPaola, Vice President of Business Development at Park Bank reports, “Parke Bank entered the Cannabis Industry in 2015, one of only six banks in the country serving the medicinal cannabis industry when it was first approved in New Jersey.
Our team of professionals collectively offer over a decade of experience and expertise. Some of the biggest issues cannabis dispensary owners face in 2022 may comprise for instance, a lack of resources for services including insurance and loans, a lack of comprehension of non-traditional methods for accessing capital, and a lack of understanding differences in operations across the country. It’s very important to gain an understanding of various bank restrictions.
Denise continues, “We constantly strive to adhere and adapt to the evolving regulatory guidance to best serve our clients. Most importantly, Parke Bank has cannabis experts specializing in regulatory and operational requirements. We’ve established banking relationships with several size-able cannabis-related businesses. And on-going training is provided to our staff to ensure we stay abreast of all regulatory changes.”
Written By: Denise Pereau
Womenz Straight Talk Magazine