‘Prominent Customers’ Persuade Nevada Bank to Take MMJ Accounts

A bank in Nevada has revealed that it intends to work with medical marijuana companies, saying several of its “prominent customers” are applying for licenses to operate dispensaries and cultivation sites.

First Security Bank of Nevada will offer accounts for medical marijuana businesses under the recent guidelines established by the federal government. The bank has not established a timeline for opening the accounts.

The decision is notable because few – if any – banks that actually work with the industry admit so publicly.

The decision shows the power that politically connected and high net-worth individuals can have on local cannabis industries.

The bank’s CEO, John Sullivan, said in a radio interview he was persuaded to serve the cannabis industry by a handful of customers who are applying for business licenses in Clark County.

“We had several prominent customers in Las Vegas, some of whom have been applying for medical marijuana-related establishments,” Sullivan said. “They came to us and said this is what we want to do.”

Sullivan would not divulge the names of his customers. A recent Las Vegas Review Journal story said that the applicants in Clark County include prominent business leaders, former politicians, well-known doctors and lobbyists.

Sullivan acknowledged the risks associated with cannabis clients and said that many banks are simply turned off by the large amounts of cash that these businesses generate. Cash-intensive businesses force banks to hire additional staff to count the money, he said.

7 comments on “‘Prominent Customers’ Persuade Nevada Bank to Take MMJ Accounts
  1. Ronnie on

    Yet another illustration of how rich and powerful one must be in this industry in order to do business in this state. I will continue to complain as long as small entrepreneurs like myself are denied any opportunity to start businesses in this state. Those people are getting in on this ‘green’ business for more green. Many of us want to do it out of compassionate care. I so dislike greed. I think this fits in with the whole income inequality debate we’re engaged in at this moment in time.

    Reply
  2. Torch on

    Hey Ronnie boy, the rich and powerful are going to give you a bank so you won’t have to hide you cash under a mattress any more. Quit whining. The rich and powerful run a risk just like the MJ companies suspended by the the SEC in the last month. The income inequality debate is a false narrative to provide a smoke screen for the absolutely terrible job the president and Democrats are doing and to avoid the myriad of scandals. Give me a break.

    Reply
  3. ronnie girl on

    I’ll ignore you Torch since you know nothing. Blaming POTUS and his party is a false narrative to provide a smokescreen. I’m sorry you were too busy being nasty to get the simple point.

    Reply
  4. Michele Brooke, Esq. on

    Ronnie,

    Not giving any particular advice here, but in some instances it appears the small business entrepreneurs, like yourself, are facing difficult challenges in this industry. So to gain a place on the “laying field”, smaller businesses might consider developing strategic alliances for joint ventures or partnerships with other like-minded or complementary business entities. This could potentially give two or three businesses, having a joint venture agreement, additional traction to conduct business on a larger scale.

    Reply

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