For legalized marijuana, banking woes persist in Missouri

Nearly three years after Missouri voters legalized medical marijuana across the state, the cannabis industry in St. Louis appears to be thriving, with state-regulated dispensaries popping up throughout the region. But managing the money side of things has proven a struggle for many distributors and growers — even though their businesses are fully legitimate.

That’s because many banks won’t accept their money, or insist on charging them significant fees if they do.

“It’s not that banks are not allowed to bank in that space,” St. Louis-based accountant David Smith explained to St. Louis on the Air. Rather, they’re held to “a higher standard of documentation” for doing such business — much like cannabis businesses themselves. And that’s thanks to federal regulations, which still list marijuana as a Schedule 1 drug.

Smith, who is the owner and president of Smith Patrick CPAs, has sought to be a source of encouragement and guidance for new St. Louis cannabis businesses, helping them manage their operations and cash in transparent and above-the-board ways.

“As [medical marijuana] came to Missouri, we were very proactive and wanted to support the industry,” he said. “But it hasn’t been without concerns, pitfalls or risk.” [Read more at St. Louis Public Radio]