Marijuana and hemp-related companies will get access to Southern Dakota banking institutions, pending a signature from Gov. Kristi Noem.
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 an hemp that is industrial marijuana license, if leg at the state level. The legislation passed with 33 votes in favor and two opposed.
“There’s no way of telling where revenues were derived from 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 cannabis-related businesses, noting. “It offers up some safety and security for clients as well as the banking industry.”
According towards the United states Bankers Association, banks that work with cannabis-related companies reveal on their own to risk that is significant. Marijuana is still illegal at the level that is federal meaning that any connection with cash associated with cannabis operations might be considered cash laundering and expose banking institutions to significant appropriate, functional and regulatory dangers. [Read more at Sioux Falls Argus Leader]