Cannabis Business Banking in New Jersey

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Regulatory Framework for Cannabis Banking in New Jersey

In New Jersey, cannabis banking is regulated by the Department of Banking and Insurance (DOBI), which ensures financial institutions comply with state and federal laws. The Banking Division Commissioner interprets the New Jersey Administrative Code to guide these institutions. The Attorney General also plays a key role, providing legal oversight and ensuring cannabis businesses adhere to the law, especially regarding federal banking challenges.

Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in NJ Type of Financial Institution
Affinity Federal Credit Union Credit Union
Amalgamated Bank Bank
BCB Bank Bank
BlueSky Bank Bank
Chase (CBD Only) Bank
Element Federal Credit Union Credit Union
First Harvest Credit Union Credit Union
First National Bank of Pasco Bank
Green Check FINTECH
Herring Bank Bank
Jonestown Bank & Trust Co. Bank
Needham Bank Bank
Parke Bank Bank
Safe Harbor Financial FINTECH
Shore United Bank Bank
Valley Bank Bank
  • Are you a New Jersey-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .

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How Dispensaries, CBD Shops, and Hemp Shops Process Payments in NJ

Dispensaries, CBD shops, and hemp shops face unique payment processing challenges due to cannabis's federal status and varying state laws. Here's how they typically manage payments:

  • Cash: Widely used, especially in dispensaries, but impractical for large transactions.
  • Cashless ATMs: Common in dispensaries, allowing debit card use processed as ATM withdrawals. Rare in CBD/hemp shops.
  • Specialized Processors: Frequently used by CBD/hemp shops for higher-THC products.
  • Cryptocurrency: Gaining traction in cannabis businesses for greater financial flexibility.
  • Mobile Payments: Accepted by some dispensaries but rare in CBD/hemp shops due to regulations.
  • Bank Transfers: More common in hemp shops, as hemp is federally legal.

Challenges Faced by Cannabis-Related Businesses in New Jersey in Accessing Banking Services

  • Federal Legal Status: Cannabis remains illegal federally, causing banks to avoid servicing CRBs to comply with federal law.
  • Compliance Risks: Banks must comply with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws, requiring extensive reporting, which many banks find burdensome.
  • Reputational Concerns: Associating with cannabis may harm banks' reputations, especially if federal legalization doesn't occur.
  • State Legislation Limitations: New Jersey protects banks from state penalties for working with CRBs, but federal risks remain.

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