Prohibited Activities
Grasshopper Bank N.A. prohibits certain activities to keep the Bank and its clients safe. These activities include a business purpose of or any entity with funds derived from or to be used for the following purposes:
- Cryptocurrency
- NFTs
- Gambling
- Shell Banks
- Hard Money Lenders
- Sanctioned and Prohibited Countries
- Cannabis
- Adult Entertainment
- Any illegal activity
Cryptocurrency
Example of out of Grasshopper Bank scope for Cryptocurrency:
- Entity whose business purpose is to gather funds to send to a cryptocurrency exchange, broker, or investment service.
- Entity that receives funds from a cryptocurrency exchange or brokerage to distribute to other individuals or entities
- Any entity that is a crypto currency exchange or broker.
- Any company with revenue that has been significantly derived from cryptocurrency exchange or sale.
- Any company utilizing cryptocurrency as an asset management strategy
Non-Fungible Tokens (NFTs)
Example of out of Grasshopper Bank scope for NFTs:
- Any entity that is a NFT marketplace, broker, or trader.
- Any entity that solely receives funds derived from NFT transactions
- Any entity with revenue that has been significantly derived from the sale, trade, or management of NFTs.
Cannabis
Example of out of Grasshopper Bank scope for Cannabis:
- Entity with business purposes of investing in or receiving investments from cannabis sales or cultivation.
- Entity is a real estate company whose properties consist of marijuana retailers or cultivators
Restricted Activities
Grasshopper Bank N.A. restricts certain activities and business types to keep the Bank and its clients safe. These activities may require approval prior to onboarding and are subject to additional due diligence.
- Third Party Payment Processors
- Money Service Businesses
- Pawn Brokers
- Firearms/Weapons
- Non-Bank Financial Institutions
- Foreign Financial Institutions
- Non-Profit Organizations
- Foreign Entities
- Religious Organizations
National Defense
All firearms, weapons, and defense related entities require additional due diligence and are subject to expanded approval prior to onboarding. This includes but is not limited to:
- Domestic firearm retailers.
- Entities regulated by the International Traffic in Arms Regulations (ITAR).
- Other defense-related manufacturers.
The prohibited and restricted activity types may be subject to change as deemed necessary by Grasshopper Bank N.A. The Bank reserves the right to decline or close a relationship upon review of activity that does not align with business or compliance objectives.
For additional information, refer to our Master Service Agreement.
