close tovideo lawmakers take into consideration, let the banks do business with cannabis companies
LAS VEGAS-Despite the legal fight, in a handful of States, including Nevada, many cannabis companies to find banks and financial institutions that are willing to take a risk, to rely on an industry to a product that remains on the Federal blacklist.
“We tried to go to a few different banks, and pretty much no one will touch us,” said Jillian Nelson, vice president of operations at Evergreen Organix, a medical-marijuana businesses in Las Vegas. “As soon as you know that we have a medical-marijuana businesses, they want nothing to do with us.”
While 33 States have legalized marijuana in any form, it is still illegal on the Federal level – the banks and financial institutions such as credit unions, wary of the business with cannabis companies.
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“You’re not going to the larger banks — the Chase – [s] Bank of America [s] – in General, working with these companies, because of the fear of the regulators coming and a clampdown on this process,” IRC-to-riches CEO David Ragland said, adding Fox News, that smaller banks, however, working with these companies.
Currently, 438 banks and 113 credit unions are actively working with marijuana-related businesses in the United States, according to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN).
A bill has been introduced in Nevada on Monday that the hope is to create a process to license banks and credit unions serving the marijuana dispensaries in order to provide pharmacies to invest in a safe way, in the economy. Under the proposed bill, the licensed banks and credit institutions, the trade unions would not be necessary-insured by the Federal Deposit Insurance Corporation, according to The Associated Press.
Legislation introduced in Washington, DC earlier this month by Democrat Ed Perlmutter of Colorado and Denny heck of Washington aims to offer banks, including the co-transactions, the protection against sanctions when dealing with marijuana businesses. The bill would also tribe fit-the language and change the definition of cannabis business.
Under the current law, financial institutions may be prosecuted for working with marijuana businesses, as it is still considered a Schedule I drug at the Federal level.
The safe and SECURE Banking would be to provide protection for banks and financial institutions against sanctions for working with marijuana businesses.
“If you choose this licensed company that said, you should have access to banking services,” Jonathan Caulkins, professor at Carnegie Mellon University and adjunct researcher with the RAND Drug Policy Research Center, go. “There is an argument that a for-profit industry, there is an argument that only non-profit organizations should be allowed, cannabis or just the government. But, to occupy as soon as you allow the industry, in this room, you should have access to banking services.”
Without access to banks, marijuana businesses that are forced to work mainly in the Bar so that the companies are the primary targets for crime.
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“We have to retain the services of armed guards for cash-pick-UPS-shipments and distributions, because of Transport, the type of money and large sums of money, everyone is sure to really today,” Nelson told Fox News, adding that the bill could change his “life for all in the cannabis industry.”
The entire Nevada delegation supports the draft law, with Republican Rep. Mark Amodei, the last signal of his support. While he believes that there is additional control, such as the granting of local and Federal government access to financial records, he admitted, “you should not have to do with a whole bunch of cash in circulation, as they are now,” according to Nevada Regardless.
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But Caulkins believes that “the legalization of banking services is a reasonable intermediary” in a “chaotic” situation, to adopt, as States continue to pro-cannabis policy, which is contrary to Federal law.
“It is not really useful, state-legal, illegal by the Federal government,” he said. “But this is a good band to help aid the bridge, or transition, times less messy.”
The SAFE Banking Act, of more than 130 bi-partisan co-sponsors, has been sidelined since 2013 – but with a Democrat-controlled house of representatives, Perlmutter believes that the diversity of the laws is much higher than in the past.
“We have a much better chance than we ever had before, partly because the Democrats think the house and I think the fact that we are in the 47 States that use a certain amount of marijuana,” mother-of-pearl of Nevada, told the independent earlier this month. “Prohibition is over. We need the money to get out of the street.”
When the bill has finally become law, the already flourishing industry could see even more dramatic growth is similar to the legalization of gambling Las Vegas changed and the end of prohibition catalyzes the alcohol industry, Ragland said.
The first markup hearing for the bill in the House Financial Services Committee on March 26.