The Department of Financial Services has issued guidance to financial institutions in hopes of encouraging them to work with medical marijuana and industrial hemp businesses in the state. The department indicated that no regulatory actions will be taken against financial institutions that choose to work with these businesses.
Medical marijuana companies in the state still have to operate in mostly cash, Albany Times Union reports. It makes these businesses vulnerable to robberies, theft and other instances of crime. The new guidance from finance regulators should make business operations safer for all companies in the industry.
Lt. Governor Kathy Hochul said, “While the federal government ignores the reality of the benefits of medical marijuana and industrial hemp, New York has supported the development of the industry and advanced our agricultural economy. We’re cutting the red tape and removing regulatory barriers to support businesses in the legal cannabis industry. Today’s action to encourage banking relationships will go a long way to assist this emerging sector of our economy.”