Banks out of reach, Md. marijuana businesses eye unique solutions

With state regulators next week revealing the recipients of the first round of licenses for growing and processing medical marijuana, one big question remains: Where does the money go?

The federal government is still at odds with the 25 states and the District of Columbia where medical marijuana is legal, leaving banks at a loss for clear regulations that would let them offer services to those businesses. The Department of Justice has offered some guidance to financial institutions, but it doesn’t provide the assurances bankers say they need to have a relationship with businesses that deal with what the federal government considers a controlled substance.Maple Lawn-based Offit Kurman, which launched a medical marijuana practice group earlier this year, is helping entrepreneurs and businesses get the assistance they need as Maryland’s cannabis industry gets ready for prime time.

Earlier this week, the U.S. Drug Enforcement Administration said it will continue to classify marijuana as a Schedule 1 drug, the most restrictive of the agency’s five classifications, meaning it’s considered highly addictive and without medical benefit.

Maple Lawn-based Offit Kurman, which launched a medical marijuana practice group earlier this year, is helping entrepreneurs and businesses get the assistance they need as Maryland’s cannabis industry gets ready for prime time.

“On a practical side, most banks are not comfortable getting into cannabis,” Darren H. Weiss, a member of Offit Kurman’s new practice.

“It’s a really interesting opportunity for entrepreneurs and innovators in the space,” said Weiss.

Click here to read the full article on the Daily Record.

If you have any questions on Maryland or Pennsylvania medical cannabis licensing, business formation, legal or compliance issues please contact Jonathan Wachs here or Darren Weiss here.

ABOUT THE OFFIT KURMAN CANNABIS PRACTICE GROUP

It is a rare occurrence in this day and age that an entirely new industry springs up virtually overnight. The recent legalization of cannabis, both in Maryland and in over twenty states across the country, has caused just such a phenomenon, however. The unprecedented space which the cannabis industry occupies requires not only a finely-tuned understanding of the law but competent counsel on a wide variety of compliance-related issues. Offit Kurman, PA, with over 120 attorneys across the mid-Atlantic region, has a well-established record of successfully representing the business community in many areas including, without limitation, regulatory compliance, health care, intellectual property, litigation, and employment law. Click here to learn more.

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