With congressional lawmakers still working to build consensus around cannabis banking reform at the federal level, the governor of New York has signed legislation that attempts to make it slightly easier for financial institutions to work with state-licensed cannabis clients.
The new law authorizes the state’s Office of Cannabis Management (OCM) to provide financial institutions with information about cannabis business licensees or applicants, which is meant to ease compliance with reporting requirements. Licensees and applicants would first have to consent to information being shared.
The measure, sponsored by Sen. Jeremy Cooney (D) and Assemblymember Crystal Peoples-Stokes (D), was signed into law late last week by Gov. Kathy Hochul (D).
“This will allow financial institutions to have access to verify personal and financial information for their prospective cannabis clients,” according to a justification memo attached to the bill. “It will improve ‘Know Your Customer’ compliance and make it easier and less costly for financial institutions who want to bank cannabis businesses to comply with the federal reporting.”
Read more at marijuanamoment.net