When generating revenue in a business, we all need a good financial institution that is able to work with all, if not most business. In recent news a financial institution out of Oregon, MBank, which has worked with the cannabis industry this past year, that within 60 days all marijuana realted accounts will be terminated.
CEO and President of MBank Jef Baker stated that the time and money that went towards obating cooperation was too much of a struggle for the Gresham, another financial institution out of Oregon to handle. MBank was said to have 75 accounts all dealing with cannabis related buisness making them the largest instution working with the marijuana industry.
“We just do not have the resources to manage the compliance necessary” to service the marijuana industry, Baker stated. “This is not what we want to do, this is what we have to do. We got into this business to serve an underserved group and I wish we could still do that.”
“My personal opinion is that it will have a negative effect on other banks’ appetites,” Baker said. “Anytime one of us exits a business it’s a red flag of sorts. I don’t think this is going to be a positive.”
The president and CEO of MBank has stated he will continue to be involved in the marijuana industry by speaking and informing others on the buisnsess and board participation.
Baker has stated he hopes the problem with cannabis related buisness and banking will be solved but for small town Instutions like MBank unfortunatey the money spent on compliance is to costly.
For the furute of marijuana buisness and banking it’s going to take a large bank that has accesible resources to handle these specific accounts.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
