Cannabis Industry Taking Steps To Evolve From Cash-Based Banking
Cannabis operations have dealt with a lack of bank support for a long time. During a hearing before the House Appropriations Financial Services and General Government Subcommittee, IRS Commissioner Charles Rettig was asked about the lack of banking services for cannabis operations.
“The IRS would prefer direct deposits more so than receiving actual cash payments,” Rettig says. “It’s a security issue for the IRS. It’s a security issue for our employees in our taxpayer assistance centers, [which] is actually where we receive these payments.”
This echoes Former Treasury Secretary Steven Mnuchin who, in 2019, voiced concerns about the IRS cash rooms and called for Congress to resolve the banking issues faced by the cannabis industry.
Cannabis finances also came up during the confirmation hearing of Adewale Adeyemo, President Biden’s Nominee for Deputy Secretary of the Treasury. Adeyemo was asked if the 2014 Financial Crimes Enforcement Network (FinCEN) should be updated.
““I look forward, if confirmed, to talking to my colleagues at Treasury about this important issue and thinking through what changes may be needed and doing this in a way that’s consistent with the interagency with the president’s guidance,” Adeyemo says. “In doing that, I look forward to consulting with you and members of this committee on our path forward.”
To learn more about the IRS Chief’s request, click here.
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