Marijuana banking grows, terminations too
More financial institutions are servicing the marijuana industry, but depositories have terminated 5,650 accounts at an increasingly rapid clip. The data shows incremental improvement for a previously locked-out industry, but the gains are not keeping pace with the industry's exponential revenue growth.
Between June 2016 and September 2016, U.S. financial institutions terminated roughly 8.8 accounts per day, up from a rate of 7.5 terminations per day from November 2015 to May 2016. At the same time, the number of depositories servicing the industry has increased 15.6% year over year.
S&P Global Market Intelligence received the data from the Treasury Department's Financial Crimes Enforcement Network, or FinCEN, via a Freedom of Information Act request. Account terminations are highly disruptive to any business.
"Operations come to a screeching halt. It affects your payroll, your ability to pay bills. … In many cases, the banks will report this activity to law enforcement," said...
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