Lake Trust Credit Union, other financial institutions wade into Michigan cannabis banking market
“The risk that we have is tremendous, right? I mean, literally, I could go to jail if we are allowing money-laundered funds to come through our (cannabis) program,” he said. “I don’t look very good in orange, in all honesty.”
Patricia Herndon, executive vice president of government relations for the Michigan Bankers Association, said Lake Trust is among the bigger players she’s seen enter the ring. She estimates around 5-10 banks in Michigan work with cannabis businesses. The Michigan Credit Union League recently told MiBiz a similar figure: around 10 credit unions participating.
Others jumping in this year to accept cannabis clients in Michigan include Citizens State Bank, with around $85 million in assets, which recently expanded from Ontonagon in the Upper Peninsula to a new headquarters in Royal Oak. There’s also Battle Creek-based BlueOx Credit Union, which partnered with Abingdon, Md.-based Safe Harbor Financial to create a cannabis banking arm called Solid Harbor of Michigan. Safe Harbor Financial first established cannabis financial services in Colorado in 2014. Farmington Hills-based Level One Bancorp Inc. also works with cannabis businesses and expects to continue to do so after being acquired by Muncie, Ind.-based First Merchants Corp.
Posted By: Crain’s Detroit Business on November 9, 2021. For more information, please click here to read the source article.
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