CBD companies often face the challenge of accessing banking services due to certain federal laws. Despite the difficulties, it is possible for them to use banks. In this article, we will explore why it can be challenging for CBD companies to access banking services, and what solutions are available for them.
Why is it Challenging for CBD Companies to Access Banking Services?
It can be difficult for CBD companies to access banking services due to the federal laws surrounding CBD. Federal law prohibits banks from knowingly providing banking services to businesses involved in the sale of cannabis products, including CBD.
Banks that provide banking services to businesses in the cannabis industry can be prosecuted under the Controlled Substances Act, so many banks are hesitant to provide services to these businesses. The challenge is that CBD companies fall into a gray area due to the fact that hemp-derived CBD is legal on the federal level, but cannabis-derived CBD may be illegal in some states.
This makes it difficult for banks to make a decision about providing services or not. Banks must also comply with applicable state laws, which can be confusing and difficult to navigate.
There are some solutions available for CBD companies looking to access banking services. Some banks are beginning to provide services to CBD companies, although this is still a relatively new development. There are payment processing companies that specialize in serving the cannabis industry, which can provide CBD companies with an alternative to traditional banking services. All CBD companies should research their options and find the best solution for their needs.