Maryland’s Efforts to Support Cannabis Banking
The Maryland Office of Financial Regulation ensures state-chartered financial institutions comply with state laws and monitors those serving cannabis businesses. To address marijuana-related banking challenges, Maryland has launched key initiatives to connect these businesses with financial services.
- Capital Access Program: This program helps by guaranteeing loans for banks working with cannabis businesses, making it less risky for financial institutions to offer services. Social equity applicants can benefit from this program, with dispensaries eligible for loans up to $500,000 and growers up to $1 million.
- Loan-Loss Prevention Account: To further reduce the risk for banks, Maryland has set up this account to cover potential losses for institutions serving the cannabis industry.
Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in MD |
Type of Financial Institution |
Amalgamated Bank |
Bank |
Bulldog Federal Credit Union |
Credit Union |
CFG Bank |
Bank |
Chase (CBD Only) |
Bank |
Element Federal Credit Union |
Credit Union |
First Citizens Bank |
Bank |
First National Bank of Pasco |
Bank |
FVC Bank |
Bank |
Green Check |
FINTECH |
Jonestown Bank & Trust Co. |
Bank |
Needham Bank |
Bank |
Nymeo |
Credit Union |
Parke Bank |
Bank |
Safe Harbor Financial |
FINTECH |
Shore United Bank |
Bank |
- Are you a Maryland-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .
MD Payment Processes
Cannabis businesses in Maryland face challenges with traditional banking, prompting them to explore these alternatives:
- Cash Transactions: Common but risky, with high fees (up to 8%) at accepting banks.
- Debit Card Processing: Enable compliant payments via cannabis-specific POS systems.
- ACH and eCheck Payments: Streamline direct payments from customer bank accounts.
- Specialized Payment Processors: Offer secure credit card, ACH, and eCheck options for high-risk industries.
- Integrated POS Systems: Combine payment processing with inventory and compliance management.
What Should Financial Institutions Know About Cannabis Banking in Maryland?
Engaging in cannabis banking in Maryland involves significant risks due to state and federal legal conflicts. Key considerations include:
- Federal Legal Risks: Cannabis remains federally illegal, exposing financial institutions to potential enforcement actions, including money laundering charges, despite Maryland's legalization.
- Regulatory Compliance: Institutions face stringent requirements under the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) rules, requiring enhanced due diligence and costly monitoring measures.
- Reputational Risks: Partnering with the cannabis industry may affect an institution’s public image due to varying stakeholder opinions on legalization.
- Operational Risks: The cash-heavy cannabis industry heightens risks of theft and fraud, necessitating robust security measures.
- Legislative Uncertainty: The future of federal initiatives like the SAFER Banking Act remains unclear, adding complexity to risk management efforts.