Joint memos were issued by the U.S. Justice Department and Treasury Department that provide banks with guidelines. Under the rules, banks must verify that marijuana companies are properly licensed by the state before pursuing a business relationship.
The first new venture to enter the market is KindBanking, set to launch on 4/20/2014. It’s headed up by David Dinenberg, who has worked previously in the real estate field with such luminaries as Donald Trump as well as in the entertainment industry with Will Smith among others.
“KindBanking was founded to support and grow the present and future cannabis industry. Transparency, compliance and adaptability are our guiding principles. This foundation will enable KindBanking to help develop the landscape, resulting in a balanced and diversified, global cannabis market,” said Dinenberg, the new financial company’s founder and chief executive officer.
“KindBanking will provide financing to the underserved legal cannabis industry, allowing people and their businesses to realize their full potential. Our utmost commitment is to tailoring comprehensive financial and business solutions to help each client meet their unique goals,” he said.
According to industry experts, the team at KindBanking has a reputation for accessibility, ease and excellence by showing the cannabis industry and the people fostering its growth the courtesy and respect that they deserve. The knowledge, fluency and flexibility of Kindbanking’s team of experts will help shape the standards of this industry.
The stage is perfectly set for KindBanking as a comprehensive financial solution for the legal cannabis industry. The products and services will include:
Global investment fund. The legalized cannabis industry, embracing both hemp and marijuana, represents a global opportunity for investment. KindBanking.com recognizes the need for a fund that benefits legal cannabis businesses in U.S. and foreign markets. The fund intends to make debt, convertible debt, and equity investments to help start-ups, provide capital to emerging companies, and accelerate the continued rise of more established businesses.
Cash storage business. KindBanking intends to provide armored car pickup and delivery for hard currency. KindBanking will employ former military personnel to provide a secure environment for processing cash transactions. Initial locations will be in Seattle and Denver.
KindBanking’s KindCard. This is a debit card solution, which will facilitate cashless transactions. Kindbanking understands that cannabis retail stores and similar businesses desire a card- based solution to conduct everyday transactions.
KindBanking anticipates launching its website by mid-April. “We are thrilled to be making history being the first business of our kind working with the cannabis industry,” Dinenberg said. “We are a business founded with family values and believe that the American Dream is possible within the cannabis industry. Uniting our company and the cannabis community will bring both relief and growth for the many people who have been ignored by the financial community.
“The services we offer will help build companies, create jobs and also heal our economy. Cannabis is mainstream now and we are proud to lead the way in our particular field. We urge all who are interested to please sign up on our website for the latest updates as we continue to build our company and the cannabis industry.”
In the days following the joint memos, major U.S. banks and banking institutions have upheld their refusal to work with the industry.
A spokeswoman from Bank of America said the bank is reviewing the government’s new guidelines but would continue to ban cannabis businesses because, based on federal law, “the sale and use of marijuana is still illegal.”
Things aren’t going to change overnight. I’m just happy to see someone finally take a step forward with a solution to allow us as business owners to bank just like any other legitimate hard- working business.
There is a kind bright light at the end of this tunnel.