Apr 242015
 April 24, 2015

marijuana cash industry bankingThe marijuana industry is largely a cash-only industry. This is due to the fact that so many banks won’t work with marijuana businesses. Some banks won’t do it because they don’t want to touch the industry, while many others don’t do it because the amount of hoops they have to jump through just aren’t worth it. Large amounts of cash, in any industry, can create a lot of public safety and logistical issues.

Because marijuana businesses are often forced to be ‘cash only,’ they often pay their taxes in cash as well. That’s something that Oregon regulators are preparing for as the framework for the recreational marijuana industry gets established. Per Marijuana Business Daily:

About 30% of existing medical marijuana businesses in the state pay their tax bills with cash thanks to a lack of banking options, creating security and public safety issues, Steven Marks, the executive director of the Oregon Liquor Control Commission, told The Oregonian.

Aside from adding a specific line for cannabis businesses at its offices, the commission also will spend more than $600,000 to upgrade its entry to handle the influx of marijuana companies bringing in large amounts of cash. Additionally, it’s considering opening a southern Oregon facility so companies in the area don’t have to drive to Portland with large sums of cash in their vehicles, the newspaper reported.

The availability of banking, or the lack thereof, has been an ongoing issue for many cannabis business owners.

Oregon is not along when it comes to marijuana banking issues. Every state that has legal marijuana businesses operating is experiencing the same thing. The feds need to step up, and put out fair, clear banking rules for the marijuana industry. To say that it is overdue is a huge understatement.

 

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  7 Responses to “Oregon Regulators Are Preparing For Large Amounts Of Cash From Marijuana Businesses”

  1.  

    Banks prefer to deal in money associated with crime.

  2.  

    The last paragraph should start, “Oregon is not alone”, not “Oregon is not along”

  3.  

    They’re making this way more complicated than it needs to be!! Treat it like tobacco and alcohol for shit sakes and move forward already!! So frustrating these people are!!

    •  

      Alcohol and tobacco are not federally illegal. Banks cannot openly process transactions with federally illegal things without risking racketeering charges.

      Both alcohol and tobacco are taxed and regulated more than lettuce. Both have excise taxes in every jurisdiction where legal.
      ….and guess what, a state law legalizing a controlled substance doesn’t change the fact that its federally illegal for banks to handle the accounts of businesses selling federally illegal items. The only way around it would be to have banks which are exclusively operated within state boundaries which are not FDIC or something- I don’t think they exist.

      •  

        Oh they exsist. Some community credit unions are friendly. But for future businesses, the law needs to change, which is my point. I am well aware of the federal law.

  4.  

    So Stupid putting everyone inn danger for something so peaceful

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