Top Canadian banks cancel business with marijuana industries

ScotiaBank and Royal Bank of Canada declared they wont open new accounts with Cannabis associated businesses and have also cancelled the existing ones.

Although the Government of Canada is moving to legalize marijuana in Canada, the banks believe the industry is too risky to work with.

Royal Bank too confirmed they will no longer provide their services to companies which are associated in the making, dealing, and distribution of the weed. However, the rules at ScotiaBank are much stricter when it comes to dealing with the weed business.

According to a recent report published by the CBC News, ScotiaBank cancelled the account with Hemp Country, a small business that doesn’t actually sell marijuana but deals with its gears.

“It’s kind of insulting really, especially when legalization is right on the horizon,” Nathan MacLellan, Hemp Country owner, told the CBC.

MacLellan, had been doing business with ScotiaBank for over 10 years. “Nothing in the store that we sell is illegal. Every single variety store sells pipes and bongs nowadays, so why are they singling us out all of a sudden,” questions MacLellan.

However, according to the ScotiaBank spokesperson the decision “stems from a reassessment of our risk management practices. While we strive to be the bank of choice for our small business clients, and we are proud of the strong relationships we have built in all of our communities across Canada and abroad, we must balance that with our commitment to effectively manage all business risks.”

(Reporting by Debarati Mukherjee)