Cannabis Business Banking in Alaska
- Alaska Cannabis
- Cannabis Business in AK
- Cannabis Business Banking in Alaska
Key Regulatory Entities and Framework for Marijuana Banking in Alaska
Department of Commerce, Community, and Economic Development: Oversees cannabis banking regulations in Alaska through the Alcohol & Marijuana Control Office (AMCO).
Attorney General: Provides legal guidance to ensure compliance with state and federal laws for financial institutions serving cannabis businesses.
AK Administrative Code: Establishes the framework for regulatory practices, ensuring transparency and uniformity in cannabis-related banking operations.
- There are over 400 active marijuana licenses and banking and payment processing can be a major headache for these cannabis businesses in Alaska, even though the state legalized both medicinal and recreational cannabis.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in AK | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| Chase (CBD Only) | Bank |
| Green Check | FINTECH |
| Herring Bank | Bank |
| MAC Federal Credit Union | Credit Union |
| Safe Harbor Financial | FINTECH |
- Are you an Alaska-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .
Contact a Banker To Discuss Your Business Needs
Reach out with any questions!Aklaska’s Payment Processing Puzzle
Payment processing in Alaska's cannabis industry is challenging due to federal restrictions barring major credit card use, leaving retailers reliant on cash or Point-of-Banking (POB) systems, which process debit transactions as cash withdrawals. While CBD and hemp businesses are federally legal, many mainstream processors label them "high risk." Specialized processors now provide solutions like eChecks, debit processing, secure merchant accounts, and compliance support to address these payment challenges.
Financial Institutions’ Key Concerns
Cannabis-related businesses in Alaska can indeed open bank accounts, though their options are restricted because of the ongoing conflict between state and federal regulations.
The banks that do work with cannabis businesses take on considerable risk. The issues they face include:
- Legal and Regulatory Risks: Due to federal restrictions, they risk enforcement actions.
- Compliance Challenges: Banks must comply with extensive reporting requirements, including those from the Financial Crimes Enforcement Network (FinCEN), which demands rigorous due diligence.
- Financial and Operational Risks: Limited access to services, handling large amounts of cash, and potential reputational damage add to the risks for financial institutions.