On January 12, 2024, First Citizens Bank published an article on its website, affirming its commitment to being a “hemp-and cannabis-friendly bank”[1], as they broadened their scope from exclusively hemp/CBD to encompass the wider cannabis market.[2] Accordingly, First Citizens Bank has emerged as the largest financial institution to actively engage with the cannabis industry.[3] This is a monumental shift for the cannabis industry as it now has the potential to significantly amplify and further legitimize the sector, thereby offering abundant opportunities for entrepreneurs and businesses alike.[4]
First Citizens Bank highlights how detrimental it can be to a business to have their banking suspended due to their participation in the cannabis industry. Further, that companies engaged in the hemp/cannabis industry must understand and comply with the regulations in what is a constantly changing but heavily regulated industry. Due to this it is important that these businesses work with experts in the industry.
First Citizens Bank highlights its robust cannabis platform that “reduce[s] the risk of interrupted banking services for its cannabis and hemp industry clients,” by conducting “a thorough vetting process before a client is onboarded. It also conducts periodic reviews to ensure each client is compliant with any new industry regulations.”[5]
Like First Citizens Bank, The Wagoner Firm is closely monitoring the evolving cannabis industry; and is here to assist your business with compliance and other cannabis related matters.
[1] Navigating Cannabis and Hemp Industry Changes in 2024, first citizens bank (Jan 12, 2024), https://www.firstcitizens.com/commercial/insights/industry-expertise/cannabis-business-hemp-industry-changes.
[2] Javier Hasse, One Of America’s Biggest Banks Is Entering The Cannabis Industry: Will Others Follow?, benzinga (Feb. 23, 2024), https://www-benzinga-com.cdn.ampproject.org/c/s/www.benzinga.com/amp/content/37290951.
[3] Id.
[4] Id.
[5] Navigating Cannabis and Hemp Industry Changes in 2024, first citizens bank (Jan 12, 2024), https://www.firstcitizens.com/commercial/insights/industry-expertise/cannabis-business-hemp-industry-changes.