Jun 202014
 June 20, 2014

marijuana cash industry bankingFor a long time the federal government prohibited banks from working with the cannabis industry. Recently the Obama Administration issued guidelines that were supposed to make it possible for banks to work with the cannabis industry. However, the guidelines created more questions than answers. The guidelines can be read at this link.

The confusion has led to the Governors of Washington and Colorado asking for more clarity from the federal government. Per The Cannabist:

In a letter last week to the heads of the four major banking regulating agencies — the Board of Governors of the Federal Reserve, the Office of the Controller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration — Colorado Gov. John Hickenlooper and Washington Gov. Jay Inslee jointly and gently asked for “follow-up inter-agency guidance” to bank examiners and the banks and credit unions about how to do business with legal marijuana.

“Banks and credit unions in Colorado and Washington are waiting for the Federal Banking Agencies to furnish instructions given to bank and credit union examiners before deciding whether and how to provide banking services to state licensed recreational marijuana businesses,” the governors wrote in a May 23rd letter.

The banking issue needs to be worked out sooner than later, otherwise the cannabis industry will never reach it’s full potential. Making the cannabis industry a ‘cash only’ industry creates a public safety issue due to the fact that the industry does so many cash transactions. That cash has to go somewhere safe, otherwise it becomes a magnet for robbers and thieves, and creates logistical issues for the companies that have to store it somewhere.

So far Salal Credit Union and Numerica Credit Union, both in Washington, have stated that they intend to work with some cannabis businesses. Also, First Security Bank of Nevada recently stated that they will work with cannabis businesses once Nevada’s industry gets up and running. For the sake of everyone, the feds need comprehensive reform, not confusing guidelines. Guidelines can go away at anytime, which would just create more chaos. We will be providing the latest news regarding banking at the International Cannabis Business Conference on September 13th-14th (get your tickets now at the early bird price) and will, of course, continue providing you the latest information and developments on our blog.

Source: International Cannabis Business Conference

Comments

comments

About Anthony Johnson

Anthony Johnson is the director of New Approach Oregon, the PAC responsible for Measure 91, that ended cannabis prohibition for all Oregon adults in 2014. In addition to helping organize the International Cannabis Business Conference & the Oregon Medical Marijuana Business Conference, he also serves as a Board Member of the National Cannabis Coalition, working to legalize cannabis across the country and Show-Me Cannabis Regulation, an organization specifically working to end cannabis prohibition in Missouri.As President of the University of Missouri Law School ACLU Chapter, Anthony co-authored the measures that legalized medical cannabis possession and decriminalized personal possession for all adults within the city limits of Columbia, Missouri, in 2004. Following law school, Anthony practiced criminal defense for two years before working full time in the political field to help improve and protect civil liberties.You can follow Anthony on Twitter and also friend him on Facebook by following the links below as he posts mostly about civil liberties and politics with dashes of sports, music, movies and whatnot.
Dissenting opinions are welcome, insults and personal attacks are discouraged and hate speech will not be tolerated. Spammers and people trying to buy or sell cannabis or any drugs will be banned. Read our comment policy and FAQ for more information

 Leave a Reply