Bank of Guam Opens Its Doors to Cannabis Industry

The Bank of Guam has announced that it will offer banking services to the cannabis industry on Guam and the Northern Marianas, becoming the first local bank to do so. The bank said it will provide deposit and lending services to cannabis-related businesses (CRBs) that are legally licensed to operate in the region.

The cannabis industry on Guam and the Northern Marianas has been facing a lack of access to banking and financial services, due to the federal prohibition of cannabis and the reluctance of most banks to serve CRBs. This has created several challenges and risks for the industry, such as:

• It has forced CRBs to operate on a cash-only basis, which makes them vulnerable to theft, robbery, and violence.
• It has hindered the growth and development of the industry, by limiting the availability of capital, credit, and investment opportunities.
• It has reduced the transparency and accountability of the industry, by making it difficult to track and report the transactions, taxes, and revenues of CRBs.
• It has increased the compliance and regulatory costs for the industry, by requiring CRBs to follow complex and cumbersome rules and procedures.

The Bank of Guam said it decided to offer banking services to the cannabis industry, after conducting a thorough research and analysis of the market, the regulations, and the risks involved. The bank said it believes that providing banking services to the cannabis industry will benefit the region, by:

• It will enhance the safety and security of the industry, by reducing the reliance on cash and increasing the use of electronic payments and transfers.
• It will support the economic and social development of the region, by creating jobs, generating tax revenue, and fostering entrepreneurship and innovation.
• It will improve the oversight and governance of the industry, by enabling the monitoring and auditing of the financial activities and performance of CRBs.
• It will lower the operational and legal expenses for the industry, by simplifying and streamlining the banking and financial processes and requirements for CRBs.

The Requirements and Procedures for Banking Services for Cannabis Industry

The Bank of Guam said it will offer banking services to the cannabis industry, starting from February 2024. The bank said it will serve all tiers of CRBs, which include any organization or business that grows, processes, dispenses, administers, or derives income from selling cannabis products.

The bank said it will require CRBs to meet certain standards and criteria, in order to qualify for banking services. The bank said it will verify and validate the following information and documents from CRBs:

• The legal status and license of the CRB, issued by the Guam Cannabis Control Board or the CNMI Cannabis Commission.
• The ownership and management structure of the CRB, including the names, addresses, and backgrounds of the owners and managers.
• The financial history and records of the CRB, including the income statements, balance sheets, and tax returns.
• The compliance and risk management policies and procedures of the CRB, including the anti-money laundering, anti-fraud, and anti-terrorism measures.

The bank said it will charge an annual fee of $5,000 for each CRB account, and will apply a tiered pricing structure for the deposit and lending services, based on the volume and frequency of transactions. The bank said it will also monitor and report the financial activities and performance of CRBs, in accordance with the federal and local laws and regulations.

The bank said it will host an open house on Thursday, February 22, 2024, from 10 a.m. to 2 p.m., at its Tamuning branch, to provide more information and guidance to CRBs interested in banking services. The bank said it will also launch a website, bankofguam.com/cannabis-banking, where CRBs can apply online and access the relevant forms and documents.