Challenges in Accessing Banking Services Hinder Growth of Barbados' Medicinal Cannabis Industry

Barbados’ fledgling medicinal cannabis industry is unable to access domestic and international banking services, according to Acting Chief Executive Officer of the Barbados Medicinal Cannabis Licensing Authority (BMCLA), Shanika Roberts-Odle.

Speaking at the inaugural BAJCAN Cannabis Medical Conference and Expo at the Lloyd Erskine Sandiford Centre, Roberts-Odle highlighted how banking difficulties have stymied the progress of the industry, with many businesses unable to open accounts or transfer funds due to traditional banks’ refusal to engage with cannabis growers.

“Most of you can’t get a bank account. You can’t get your funds moved from one place to another, and it creates a hell of a lot of issues,” she said, underscoring the frustration within the industry.

The BMCLA has made efforts to address the issue by signing a Memorandum of Understanding (MOU) with digital banking platform M-Money, but Roberts-Odle admitted that much work remains. “While we haven’t completely solved the banking issue, absolutely we haven’t, it does bring us closer and allows us to move money locally,” she said. Despite this, she urged perseverance: “Fear cannot be the enemy to progress, and certainly not for the medicinal cannabis industry.”

Acting Minister of Agriculture Wilfred Abrahams, addressing the conference, also referred to the reluctance of traditional financial institutions to engage with cannabis-related businesses.

“Banking is a huge hurdle,” he admitted.

Despite ongoing discussions with the Barbados Banking Association, Abrahams said: “They have politely but firmly told me no.”

He expressed hope that the sector’s position would eventually change but acknowledged that the lack of banking solutions remains a significant barrier to the industry’s development.

“The reality is that at some point in time, the banking sector is going to come in line. Until that happens, you have to do what you have to do to make the dream work,” he remarked, encouraging industry stakeholders to persist despite these challenges.

Another significant challenge has been securing insurance, as traditional providers have shown reluctance to offer coverage for cannabis-related businesses. Roberts-Odle pointed out that this affects all aspects of the industry, from crop insurance to facility protection and patient access to treatments.

“Insurance is an issue,” she noted, calling for more comprehensive solutions to safeguard businesses and ensure patient safety.

Abrahams urged the insurance sector to take a more active role in supporting the industry.

“All aspects of insurance as it relates to medical cannabis need to be on the table,” he said, urging underwriters to create insurance plans that address the industry’s needs, including crop insurance and patient coverage within the healthcare system.

Despite early optimism and the issuance of licences, the industry’s slow pace has frustrated many stakeholders. Roberts-Odle acknowledged the disappointment but emphasised the importance of caution.