The 2018 Farm Bill was the catalyst for the CBD craze across Wisconsin in 2019, but local CBD businesses now face a set of new challenges with some financial institutions closing their accounts.
Beyond Full Spectrum, a CBD business in downtown Waukesha, is now on their second bank account, said Michelle La Count, co-owner of Beyond Full Spectrum. After having an account with Summit Credit Union for several months, Beyond Full Spectrum was informed their account would be closed.
In a statement to The Freeman, Summit Credit Union CEO and President Kim Sponem explained their decision to close Full Spectrum’s account and called for more clarity in state and federal financial institution laws before opening accounts for a business selling CBD.
Although regulations for credit unions and banks differ, Wisconsin banks are facing similar challenges when servicing businesses in the CBD industry.
Banks must comply with several federal guidelines, some of which are not clear when it comes to bank accounts for CBD businesses, said Scott Birrenkott, assistant legal director for Wisconsin Bankers Association. “We’re looking at a situation where the government is going to come into the bank and look at these files, but the banks don’t know what to be prepared for because they haven’t told them,” Birrenkott said.
Read more in The Waukesha Freeman.