Medical-marijuana dispensaries run into trouble at the bank
Source: Seattle Times
Some dispensary owners say they've resorted to euphemisms such as a "holistic healing center" when trying to open a bank account.
That's in part because federal authorities have warned banks that handling receipts from marijuana sales remains illegal under federal law and could violate money-laundering laws.
The conflict is not isolated to Washington, one of 16 states plus the District of Columbia to allow therapeutic use of marijuana for certain patients.
Aaron Smith, executive director of the Washington, D.C.-based National Cannabis Industry Association, estimates that half of dispensaries nationwide lack a bank account, which he blames on pressure from federal banking regulators.
"It is a widespread problem that threatens the entire industry," he said.
Read more: http://seattletimes.nwsource.com/html/localnews/2018103547_maribanking30m.html
It would seem if dispensaries must resort to dealing in cash, not only are they targets for robbery,
when Federal agents show up which they often do despite local laws, all cash can be confiscated.
There are a host of problems that will result from this ridiculous IMO, decision by the banks. They
will take the money of fraudulent scammers of small investors, but not legitimate local businesses.
Bill Maher should have used his $1,000,000 to invest in a few private banks in CA., WA. and other states
with dispensaries facing the same issues.
gateley
(62,683 posts)these people.
xchrom
(108,903 posts)mcgarry50
(68 posts)the banks only like to launder drug money.
Ruby the Liberal
(26,219 posts)They should band together and form a Credit Union.
Yo_Mama
(8,303 posts)Banking is a regulated industry in the US. Who starts a bank or credit union is regulated.
BSA (the law under which this is being done) controls even non banks, so even if the dispensary owners were to gather together and start a non-bank money service business that would take cash and make payments electronically, they would still be subject to these laws.
This is one way the feds can pretty much shut them down. FinCEN:
http://www.fincen.gov/
Money services businesses have to follow all these laws too:
http://www.fincen.gov/financial_institutions/msb/
The Feds are tightening down even on the prepaid card business:
http://www.fincen.gov/news_room/nr/html/20120314.html
Ruby the Liberal
(26,219 posts)Dated thinking here, but used to be that Credit Unions were restricted to things like having to be an employee, union member, member of a club, etc. I know now they pretty much limit it to "do you have money", but aren't affinity charters still doable?
anti-alec
(420 posts)and can find backers to guarantee the deposits.
Feds can not tell us what to do with the money we collect.
We pay taxes, and if the feds doesn't want us to pay taxes, then we won't.
They lose out on major cash flow coming their way if they don't legalize it fast enough.
Yo_Mama
(8,303 posts)subject to all the regulations. They can beat you to death that way if they want to do it, and it appears they do.
TownDrunk2
(63 posts)The federal government is a wholly owned subsidiary of the pharmaceutical industry. Who will suffer if marijuana is ever made legal (don't hold your breath). The pharmaceutical industry which stands to lose billions on the sales of anti-depressants and tranquilizers which is a huge portion of their market.
randome
(34,845 posts)...the time or the inclination to grow their own any more than they do to grown their own tobacco or brew their own beer.
Yo_Mama
(8,303 posts)You have to follow federal laws, and it appears the Feds are putting the pressure on banks.
Huge fines for noncompliance.
Comrade Grumpy
(13,184 posts)I hesitate to point out that Treasury is part of the Obama administration executive branch.
Ruby the Liberal
(26,219 posts)http://www.democraticunderground.com/1002628455
EmeraldCityGrl
(4,310 posts)http://www.democraticunderground.com/1002628455
Not only is this an issue for those with specific illnesses medical marijuana effectively helps, it's a huge
issue for the young voter.
Big Ag. Big Pharma and private prisons all have a investment in the future of this industry. Voters be damned.
Ruby the Liberal
(26,219 posts)CenaW
(38 posts)anti-alec
(420 posts)Fuck the feds for this one.
I'd open a MJCU and encourage the dispensaries to exchange through the CU so they can continue to accept credit/debit cards and will fight with the Feds any day, any time with thousands of armed lawyers ready to sue the hell out of the U.S. Government for trying to seize dispensary funds when they are in fact legal.
Taverner
(55,476 posts)If you think it shouldn't be legal, then you are not a progressive