Senators authorized home Bill 1203 Monday afternoon, which proactively lays groundwork for banking institutions and their subsidiaries to do business with any individual that acquires a commercial hemp or cannabis permit, if leg during the state degree. The legislation passed with 33 votes in benefit and two compared.
“There’s no chance of telling where profits had been produced by or where they’re going, that they’d have to pay their taxes and utilities with paper money if it’s a cash business,” Sen. Michael Diedrich, R-Rapid City, said in reference to banks not being allowed to engage with
-related businesses, noting. “It provides for some security and protection for customers and the banking industry.”cannabisAccording to the American Bankers Association, banks that work with Marijuana-related businesses expose themselves to risk that is significant. [Read more at Sioux Falls Argus Leader]
remains unlawful during the level that is federal meaning any experience of cash linked to cannabis operations could possibly be considered cash laundering and expose banking institutions to significant appropriate, functional and regulatory dangers. (*)