Connecticut Cannabis Banking

Countless cannabis-related businesses (CRBs) in Connecticut struggle to find reliable banking. This forces dispensaries, growers, and manufacturers to operate entirely in cash.

Not only is this risky, but it makes it nearly impossible to run and grow a business. From security threats to audit read flags and logistical headaches, there has to be a better way. That’s why we are going to help you weigh your options for Connecticut cannabis banking.

Although nationally chartered banks still refuse to work with CRBs, a few state-chartered banks have stepped up. But, even these banks force you to jump through hoops to stay compliant. That’s where our cannabis payment processing service comes in.

Solvent empowers you with the tools you need to accept payments from customers and maintain proper reporting standards. Learn more about how we can streamline your financial and compliance processes today.

The Current State of Connecticut Cannabis Banking

Connecticut legalized medical cannabis nearly 15 years ago and just passed adult-use legislation in June 2021, becoming the 19th state to do so.

Recreational sales began in early 2023 under the supervision of the Connecticut Cannabis Regulatory Authority (CRA), supplemented by local municipal licensing. Regulations are strict - CRBs must implement seed-to-sale tracking, inventory audits, and owner background investigations are fairly typical.

But because cannabis remains a Schedule I substance under federal law, most Connecticut banks - including major national institutions - still won’t work with CRBs.

It’s unfortunate, but we get it. Federal regulations like the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) requirements mandate intensive reporting. Very few banks are equipped to monitor high-risk activity tied to cannabis accounts.

Even those that do partner with cannabis businesses place steep compliance burdens on accounts: extensive documentation, frequent audits, and unpredictable fees. Abrupt account closures or thresholds on deposits without warning are all too common.

This drives operators back into insecure cash cycles. But it doesn’t have to be this way. There are a few really good options for Connecticut cannabis banking.

What Connecticut Banks Are Cannabis Friendly?

Cannabis banking is evolving in real time. As of now, there are six different banks that serve Connecticut CRBs - each of which provides the necessary account services and customer support tailored to CRBs.

Amalgamated Bank

Amalgamated Bank operates in multiple states, including Connecticut. You gain access to comprehensive business account services specifically for licensed cannabis operators.

Their program includes deposit accounts, debit cards, and compliance-ready reporting. The bank has strict due diligence standards and requires ownership disclosures, tax records, and regular business reporting.

Herring Bank

Herring Bank provides specialized cannabis banking services nationwide, including Connecticut. Their services include secure merchant processing, ACH transfer support, and compliance monitoring with cannabis regulations in mind.

Needham Bank

Needham Bank supports CRBs across Connecticut and many neighboring states with business deposit accounts, cash handling services, and remote monitoring of unusual transactions. The Cannabis program supports compliance workflows through regular reviews and documentation.

Safe Harbor Financial

Safe Harbor Financial provides full-spectrum cannabis banking support with deposit accounts, treasury management, and integration with seed-to-sale tracking. They recently expanded into Connecticut and offer compliance-focused support and risk monitoring for CRBs.

First National Bank of Pasco

Though it’s based in Florida, First National Bank of Pasco supports cannabis banking operations in multiple states, including Connecticut. They provide business checking, debit card facilities, and BSA-compliant monitoring.

Shore United Bank

Shore United Bank is another cannabis-friendly institution that serves Connecticut licensees. They set up secure checking accounts, online banking, and cash transport partnerships. Their onboarding includes an enhanced compliance protocol and consistent account reviews.

What to Look For in Connecticut Cannabis Banking

Operating a Connecticut cannabis banking account isn’t as straightforward as a traditional business banking account. There’s a lot more that goes into this process, and it’s imperative that you have a partner you can trust along the way.

Here are some things to look for, including a breakdown of the most important banking services for CRBs in Connecticut:

Checking and savings accounts to manage deposits, operating funds, and working capital.
Debit card and check services to pay vendors, utilities, and other operational expenses without cash.
ACH and wire transfers for vendor payments, payroll, tax payments, and license fees.
Online and mobile banking so you get 24/7 access to balances, transfers, and statements.
Electronic tax payment capabilities to seamlessly send excise, sales, and payroll taxes directly through the bank’s portal.
Cash pickup and delivery services, because high-volume dispensaries need secure armored transport to reduce risk and maintain compliance.
Direct deposit payroll to pay staff without cash. Some banks even offer personal accounts to staff, simplifying payroll setup.

You should expect to pay more in fees than a typical business would, but those fees should never be shrouded in mystery. Clear, transparent fee structures are a non-negotiable for Connecticut cannabis banking.

You also need access to a dedicated CRB support team within the bank. Not a generic rep or a robotic answering machine. A real human point-of-contact familiar with CRA requirements. Ideally, you wouldn’t be the bank’s first CRB account. You don’t want to be the guinea pig.

But no matter which bank in Connecticut you go with, you need to make sure you have the systems in place to handle payments effectively and remain compliant with regulations. That’s where Solvent comes in.

How Solvent Supports CRBs Looking for Cannabis Banking in Connecticut

Solvent is a membership-based platform that bridges the gap between licensed cannabis operators in Connecticut and reputable banking partners. We enable you to access compliant financial solutions built for your industry. You get:

Customizable Compliance Platform tailored to Connecticut regulations, with seed-to-sale tracking compatibility and strong audit logging.
Transaction Monitoring Tools to flag suspicious behavior, with downloadable Excel and PDF reports for internal reviews or financial institutions.
Background Check & Social Media Screening modules to support employee vetting monthly or annually.
Role-Based User Permissions and Two-Factor Authentication for secure, auditable access to your financial records.
Direct Deposit Oversight and Tip Reporting for streamlined payroll and employee support.
White-Labeled Portals so your brand remains front and center. Customers see your name, not ours.
PCI PA-DSS Validated Payment Processing, with compliant PIN Debit solutions that deposit funds into your account in two business days or less.
Real-Time Reporting Dashboards to help you reconcile payments, track fees, and stay on top of every transaction.

Most importantly, we back up your experience with live, US-based support around the clock. You always talk to a human, never a ticketing system. We’re not just an essential partner for Connecticut cannabis banking, but also cannabis banking in Massachusetts, cannabis banking in New York, and even Rhode Island cannabis banking.

Whether you're opening your first dispensary or scaling a multi-state operation, Solvent gives Connecticut CRBs the oversight and infrastructure to bank confidently. Take the next step today!

Frequently asked questions

What are the problems with cannabis banking in Connecticut?

Access. Most banks refuse to work with cannabis businesses due to federal restrictions. Many licensed CRBs are left with few (or no) options, and forced to operate primarily in cash. Even cannabis-friendly banks often have slow onboarding, high fees, and strict deposit limitations.

What is the Banking Act for cannabis?

The SAFE Banking Act is the main piece of proposed legislation that would protect banks serving cannabis businesses. It’s been passed multiple times in the House but has yet to become law. So in the meantime, financial institutions remain hesitant to work with CRBs.

What types of CRBs does Solvent serve?

Licensed dispensaries, cultivators, manufacturers, delivery operators, and vertically integrated companies all trust Solvent for the tools they need to streamline financial and compliance oversight. We also work with ancillary businesses that need compliant payment processing and oversight, such as testing labs or equipment providers.

Does Solvent offer cannabis loans?

Solvent does not directly provide loans, but we may be able to connect you with a Connecticut cannabis banking partner that offers funding options depending on your licensing, history, and business type.

How do I get started with Solvent today?

Request access through our website, and our team will reach out to walk you through onboarding. You’ll gain access to our network of banking partners, payment tools, compliance dashboards, and customer support once you're approved. It’s that easy!