Beware Cannabis Banking Scams
You don’t have to be a complete fool to fall for one of the many cannabis banking scams out there today. You just have to be desperate enough. And with legitimate cannabis businesses still finding it so difficult to utilize regular banking services, desperation is understandable.
Above the Law has published some guidelines on how to protect yourself from frauds who claim to have solutions to marijuana’s banking problem. These hucksters, the blog notes, often place your money into accounts with shell companies in violation of federal guidelines, risking your property.
Here are five red flags to consider, according to Above the Law:
1. Failure to disclose the exact financial institution where your money will be placed.
2. Failure to discuss FinCEN guidelines.
3. Exorbitant third-party fees.
4. Layers of intermediaries and third parties receiving funds.
5. Use of offshore or out-of-state accounts.
Read the entire article here.