Herring Bank is excited to launch the Cannabis Banking Program in Washington State, a specialized financial solution crafted to address the unique challenges of the cannabis industry. This program offers a full range of banking services, including checking and savings accounts specifically tailored for cannabis businesses, ensuring secure fund management. With round-the-clock online banking, businesses can manage their operations from anywhere at any time, enabling efficient consumer payments and streamlined tax submissions to maintain compliance and operational efficiency.

Recognizing the critical need for effective cash flow management in the cannabis sector, we provide specialized cash management accounts and secure cash pick-up and delivery services, making large cash transactions safer and more convenient. For businesses poised for growth, our cannabis business accounts offer essential infrastructure, and our investment opportunities are designed to optimize returns.

Herring Bank also enhances workforce management by offering employee accounts, direct deposit payroll, ACH payments, and wire transfer services, simplifying payroll and payment procedures. This comprehensive suite of financial tools is tailored to empower cannabis businesses in Washington State to succeed, laying a robust financial foundation for your success in this evolving industry.

2025 Cannabis Banking in Washington State: Updated Rules and Industry Outlook

As of 2025, cannabis banking in Washington State continues to operate in a challenging yet evolving environment, shaped by the tension between progressive state cannabis laws and restrictive federal regulations. Washington—one of the first states to legalize both medical and adult-use cannabis—has developed a mature regulatory ecosystem. However, cannabis-related businesses (CRBs) still face limited access to traditional financial services due to marijuana’s classification as a Schedule I controlled substance under federal law.

Key Updates for 2025

• The SAFER Banking Act Advances: Washington CRBs are hopeful for the passage of the federal SAFER Banking Act, which would offer safe harbor protections for banks working with state-legal cannabis businesses. The bill passed the Senate Banking Committee in 2024 and is expected to be reintroduced in the full Senate this year.

• Greater Adoption of Cannabis-Friendly Banking: More regional and community banks are entering the cannabis space, providing limited but growing competition to established players.

• Increased Scrutiny from State Regulators: Washington’s Liquor and Cannabis Board (LCB) continues to ramp up enforcement, focusing on financial tracking and regulatory transparency, especially related to cash-heavy operations.

Washington’s Regulatory Framework

Washington’s cannabis industry is regulated by the Washington State Liquor and Cannabis Board (WSLCB). To operate legally, businesses must obtain and maintain a state-issued marijuana license, which governs activities across cultivation, processing, retail, and testing.

The WSLCB enforces strict guidelines around:

• Seed-to-sale tracking (via Leaf Data Systems or Metrc)

• Financial transparency and banking disclosure

• Ownership reporting and criminal background checks

• Product packaging and advertising restrictions

While these measures aim to ensure compliance and public safety, many operators criticize the LCB’s enforcement style as overly punitive and rigid compared to other state-level programs, especially for small and minority-owned businesses.

Taxation Challenges

Washington imposes a 37% excise tax on cannabis sales, one of the highest in the U.S., in addition to local sales taxes. This tax burden significantly impacts business margins and consumer pricing, often pushing price-sensitive buyers toward the illicit market.

Policy Watch:

Advocacy groups in Olympia are pressing lawmakers to consider graduated tax structures or state-level tax relief for equity operators and small businesses. These conversations are likely to intensify if the SAFER Banking Act passes federally.

Cannabis Banking Landscape in 2025

Access to reliable banking services remains limited but is gradually improving. Due to federal legal ambiguity, many national banks and payment processors still avoid the sector. However, a growing number of cannabis-friendly banks and credit unions in Washington have stepped in to serve the industry.

Common Banking Hurdles for CRBs:

• High compliance fees for account maintenance

• Strict cash deposit limits

• Limited access to loans or credit lines

• Barriers to using digital payment platforms (debit/credit)

The SAFER Banking Act, if passed, could significantly reduce these issues by providing regulatory protections for banks and allowing wider participation from financial institutions.

Herring Bank: Cannabis Banking Services in Washington

Herring Bank continues to offer tailored financial solutions for cannabis businesses throughout Washington State. As of 2025, Herring Bank provides:

• Business checking and savings accounts for licensed cannabis operators

• Secure online banking and mobile access for transaction monitoring

• Cash logistics and armored courier services to ensure safety and compliance

• ACH and wire transfer capabilities for payroll and vendor payments

• Industry-specific compliance protocols, ensuring full alignment with LCB requirements

Unlike traditional banks that still avoid the sector, Herring Bank collaborates directly with regulators and CRB operators to offer transparent, auditable financial tools.

Strategic Guidance for CRBs in 2025

To prepare for the shifting cannabis banking environment in Washington, business owners should:

1. Maintain detailed financial records that can withstand regulatory and banking audits.

2. Separate ownership and management roles clearly in operating agreements.

3. Invest in seed-to-sale and point-of-sale systems with integrated reporting.

4. Prepare for digital payment transitions, especially as more banks enable cannabis-friendly merchant processing.

5. Engage with cannabis advocacy groups to stay informed on local tax reform efforts and federal banking legislation.

The Road Ahead: Toward a Safer, More Inclusive Market

While 2025 brings new hope for reform with the SAFER Banking Act gaining traction, cannabis businesses in Washington must continue navigating a hybrid legal environment. The ability to bank transparently is not only a matter of convenience—it’s a public safety imperative and a necessary step toward normalization.

Washington’s cannabis industry, valued at over $1.3 billion annually, will benefit immensely from more robust financial inclusion. The path forward hinges on regulatory adaptation, industry professionalism, and continued banking innovation.

Frequently Asked Questions

Can dispensaries use banks in Washington?

Yes, dispensaries can use banks like Herring Bank for their financial services, despite the challenges CRBs face in accessing banking services.

What types of cannabis companies do you support in WA?

Herring Bank extends its banking services to a diverse range of cannabis enterprises including Dispensaries, Cultivation operations, Manufacturing firms, Armored Transportation services, among others.

What are the benefits of partnering with a specialized cannabis bank?

Partnering with specialized financial institutions offers cannabis businesses growth opportunities, enhanced banking efficiency, and strong compliance and regulatory support. This can help improve the overall financial management and stability of the business.

What Cities do you serve in Washington State?

Herring Bank offers Cannabis Banking Services to the following cities: Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Spokane Valley, Federal Way, Yakima, Kirkland, Bellingham, Kennewick, Auburn, Pasco, Marysville, Sammamish, Redmond, Shoreline.