marijuana cash industry banking
Marijuana Business News

MBank To Close All Marijuana Business Accounts

marijuana cash industry bankingAnyone who has been involved in the marijuana industry knows that banking is extremely tough. For almost all marijuana businesses, having a bank account is not even an option. MBank has been trying very hard to become the ‘go to’ bank for marijuana businesses. A little while back MBank announced plans to expand into Colorado. After pressure from the feds, they decided to back off that expansion. Late last week, MBank announced that it would be closing all accounts for marijuana businesses, which is a huge blow to the industry. Per Marijuana Business Daily:

MBank, the small Oregon-based financial institution that has serviced the cannabis industry since last year, told Marijuana Business Daily that it will close all of its accounts with marijuana companies in the next two months.

Jef Baker, the CEO and president of MBank, said the cost and time spent on compliance is too much for the Gresham, Oregon-based community bank to handle. The company – which quickly became one of the largest banks serving the marijuana industry – has about 70 to 75 accounts with cannabis businesses, Baker said. Most of them are in Oregon, though a few are in Washington State.

“We just do not have the resources to manage the compliance necessary” to service the cannabis industry, he said. “This is not what we want to do, this is what we have to do. We got into this business to serve an underserved group and I wish we could still do that.”

The case of MBank highlights just how unworkable federal guidelines are when it comes to marijuana banking. For a long time the feds didn’t allow any type of marijuana banking. In recent years the feds have issued guidelines that were supposed to clear up some of the grey areas, but as the MBank situation illustrates, those guidelines just created more problems than they solved. We need true banking reform, otherwise the industry will never reach its full potential, and security and logistic concerns will remain.

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  • Patrick Star

    Why is it so hard for our federal government to realize how much this will help or economy health wise and financially are they really that stupid

    • Closet Smoker

      Yes they are. They are blinded by their own agenda.

      • Patrick Star

        Yeah they need to get out of the model t Era and catch up with the times and realize they were all fed lies!

        • Whyiowa4medical

          Cannabis extracts and tinctures were legal in the Model T era!!! The Model A was the second release many years later. It was legal during the Model A era too!!!

          • jarmstead

            Henry Ford built a vehicle that was approx. 65% Hemp based.

      • Jason

        Closet Smoker – nah they are blinded by all the campaign “contributions” from the likes of:
        — Big Pharma
        — Big Alcohol
        — Big Tobacco
        — For Profit Prison Companies
        — Prison workers union
        — Police Unions
        — Drug Testing community Lobby

        And the quid pro quo back to the Law Enforcement through legislation that allows for the sharing at local levels of seized assets…and increased budgets with military grade toys for producing arrest numbers and said seizures….

        It’s a terrible feedback loop that has corrupted the entire law and legal system. It’s amazing to me we sit here today with 4 states and DC as fully legal…I still have to remind myself at times it’s not just a fantasy…and what always brings back to reality is the creeping thought that all it would take is someone high enough in government with his/her head up his ass to have the crackdown come again….now granted I think their would be rioting in the streets so in true reality the horse is out of the barn and I don’t think anyone’s getting it back in…but stranger things have happened…

        • jarmstead

          Jason… that is pure “genius” and a completely true assessment of the issues. Well stated sir.

    • lovingc

      Short answer yes they are that stupid.

      • Patrick Star

        Then why do we have them in office they are killing or country who with they’re stupidity

        • Cyndysub

          The churches are behind getting these retards in office. Just look at Tom Cotton,Ted Cruz and Chris Christie. I bet that all of these guys have clown cars in their garages from the circus jobs that they all use to work at.

    • Lawrence Goodwin

      No, they’re actually quite brilliant to have divided and conquered Americans for nearly 80 years about cannabis, one of Earth’s most useful plant species. It’s depressing that so many citizens remain apathetic and support this madness. This should go down as one of the biggest frauds in our country, proving beyond any doubt that our constitutional republic has been replaced by pure fascism (when corporations and government merge). Federal, state and local officials have succeeded for so long in imposing this tyranny, as far as I can tell, by constantly using the Mexican Spanish slang word “marijuana.” It stands as a very effective form of brainwashing that eliminates ALL rational discussion about cannabis, which was perfectly legal to grow for the first 160 years of United States history.

  • Interview with MBank’s CEO Jef Baker after the closing of MBank: http://bit.ly/1CFTOgk

  • HellNo

    While the Federal government continues to follow failed policies, the Cartels expand their territories.
    I am from the Texas/Mexico border, where smuggling has been a way of life for generations, and today it’s a very dangerous place. The Zetas are no longer dependent on peasant farmers in the mountains, they produce quality sinsemilla in sophisticated grows just across the border. Their weed is improving, it’s cheap, and they are flooding the market. And their violence, and corruption are expanding with it.
    If politicians, and law enforcement don’t wake up, the cartels will own this country.

  • Sinclair

    The cartels have no problem finding bankers, All the feds have to do is legalize and create a tax and everything else will get done.

  • steve

    I would like to know what goes on in Mississippi all these years what have they accomplished,it makes no sense to me and what do they do with all that MJ?

  • steve

    …and our gov’mt is being just plain dumb,it doesn’t take a real smart person to see that what they r doing is crazy why not take that plant and break it down to the molecules and search out just what all it can do,we know it is for better than alcohol and nicotine but yet they try to tell everyone it is so bad for u but has it killed?NO has it caused cancer?NO so why all the lies it will always be around so get that in ur heads now people,,and gov’mt.

    • bobby

      Grammar steveo!

  • Cyndysub

    Many politicians are taking it safe by saying we will watch Colorado and Washington and see how that works out. Please, they know that if the government tried to come down hard and starting putting people in jail that it would so overload the prison system that it would break and bankrupt them. It would be impossible to build prisons fast enough and it would not be possible to house a huge number of people. If politicians ever try to turn back the clock on this issue there would be a firestorm of protest that they could not recover from.