By Jay Arthur
A top federal official told the Washington Post that 105 banks and credit unions are doing business with legal purveyors of marijuana. A welcomed report after years of needless trouble for the marijuana industry, which was forced to deal in cash thus exposing themselves to heightened risk of robbery.
President Obama gave banks the go ahead in February, and The House echoed his approval when they passed an amendment to the Financial House Services Appropriations Bill on July 16th.
According to Jennifer Shasky Calvery, director of the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the banks and credit unions working with marijuana businesses are in states representing a third of the country.
Calvery even went as far as to praise the change in federal rules at an anti-money laundering conference on Tuesday.
“From our perspective, the guidance is having the intended effect. It is facilitating access to financial services, while ensuring that this activity is transparent and the funds are going into regulated financial institutions.”
Her public praise should go a long way in assuring banks that the federal government is moving past its vague and often hypocritical stance on the burgeoning marijuana industry. Many banks remained wary of dealing with marijuana businesses in spite of Obama’s approval, fearing that they would meet the fate of so many California dispensaries caught in the grey area between state and federal law.
Prior to the federal governments policy shift, banks were required to notify regulators of suspicious or illegal activity. The new framework established similar rules, giving bankers three categories to choose from when reporting activity with marijuana related businesses.
A ‘marijuana limited’ report pertains to businesses that follow government guidelines while ensuring that sales revenue remain in the hands of legitimate, government sanctioned businessmen.
A ‘marijuana priority’ report pertains to businesses that may be involved in some illegal activity.
‘Marijuana termination’ pertains to businesses that aren’t fit to deal with the banking industry. If Potcoin survives into the latter half of the decade, it’ll be thanks to these guys.
And yet in spite of all the oversight banks continue to keep their relationship with marijuana under wraps.
Taylor West, a spokeswoman for the National Cannabis Industry Association reports:
“Our members that are working with the banks are being told not to talk about it.”
Whether or not banks speak on the issue is unimportant compared to the urgent need to get marijuana business’ money into the safety of financial institutions. Legitimate businessmen and women shouldn’t be forced to operate like the drug cartels that they are working to replace
