Feds won’t enforce money-laundering laws against banks doing business with pot stores

[slimvictor]

Marking another milestone for the legal marijuana industry, the Obama administration on Friday said it has advised U.S. attorneys in states where the sale of marijuana is legal not to prosecute banks that allow pot stores to open accounts and accept credit-card payments.

The policy will apply to Washington state and Colorado, where voters legalized the recreational use of marijuana in 2012, as well as the 20 states and the District of Columbia that allow marijuana to be sold for medical reasons. Current federal law prohibits banks from accepting money linked to marijuana transactions because the drug is banned under the federal Controlled Substances Act.

The move was hailed as a step forward by proponents of marijuana sales, but banking organizations warned that accepting the deposits was still illegal and said it was unlikely to widely change banks’ business practices.

“Legitimate marijuana businesses will no longer be forced to operate as cash-only businesses, a circumstance which has made them highly vulnerable to robbery and other criminal activities,” said Democratic Rep. Denny Heck of Washington state, who had lobbied hard for change in federal practices after his state legalized the recreational use of marijuana. Sales are expected to begin there this spring; they began in Colorado Jan. 1.

Frank Keating, chief executive officer of the American Bankers Association, was more cautious on the likely effect of the policy change. “As it stands, possession or distribution of marijuana violates federal law, and banks that provide support for those activities face the risk of prosecution and assorted sanctions,” he said.

cont at
http://www.miamiherald.com/2014/02/14/3936168/feds-wont-enforce-money-laundering.html

 

[neversickanymore]

I think it time to change the laws and quit giving assurances. The thing about Obama is that he knows whats right but he sure is good at doing the right thing with out ever committing. Time to commit to what you obviously belive in.

 

[TheRapperGoneBad]

Right on never sick.

Its bs that he lets some states go and other still have ot illegal.

He needs to legalize it country wide and allow the business to start flowing we have already seen how much money there is to be made on top of cutting down american citizens being jailed and prisoned over a plant that grows naturally and is the most harmless of substances being used to alter consciousness.

We have the right to get high and we have the right to work hard and make money in any way that works that's the fuckin american dream.

 

[bit_pattern]

From the Australian press - headline cheered me up no end this morning

http://www.abc.net.au/news/2014-02-15/us-allows-banks-to-do-business-with-pot-shops/5262160

-------------------------------------

US government to allow banks to do business with licensed marijuana companies
Posted 2 hours 56 minutes ago

People queue to buy recreational marijuana in Colorado.
PHOTO: People queued up in Colorado last month to buy marijuana when it became legal for recreational use. (Reuters: Rick Wilking)
RELATED STORY: Your say: Colorado begins legal sale of marijuanaRELATED STORY: Legal marijuana retailers open doors in US
MAP: United States
The United States government has outlined a new policy allowing licensed marijuana businesses to open bank accounts.

Twenty American states have legalised some form of marijuana use but banks have been reluctant to deal with cannabis businesses, for fear of being caught up in "drug money" crimes.

To qualify for legal protection from prosecution, the banks have to meet certain conditions.

The guidance is intended to increase the availability of bank accounts to marijuana businesses, that would otherwise deal in cash.

The Justice and Treasury departments outlined the policy in writing to federal prosecutors and financial institutions nationwide.

The department stopped short of promising immunity for banks, but made clear that criminal prosecution for money laundering and other crimes was unlikely if they met a series of conditions.

Last month, Colorado became the first state to open retail outlets legally permitted to sell marijuana to adults for recreational purposes, in a system similar to what many states have long had in place for alcohol sales.

Washington state is expected to follow Colorado's lead later this year while the number of states approving marijuana for medical purposes has also been growing.

Attorney general Eric Holder said last month that the administration was planning ways to accommodate marijuana businesses so they would not always be dealing in cash.

"There's a public safety component to this," Mr Holder said at the University of Virginia.

"Huge amounts of cash, substantial amounts of cash just kind of lying around with no place for it to be appropriately deposited, is something that would worry me just from a law enforcement perspective."

However, the American Bankers Association expressed scepticism that the guidance would make much difference.

"Marijuana sales still violate federal law, so banks are still at risk," said Rob Rowe, a lawyer with the trade group.

"Compliance by a bank will still require extensive resources to monitor any of these businesses, and it's unlikely the benefits would exceed the costs," Mr Rowe said.

"While we greatly appreciate the efforts by the Department of Justice and FinCEN, guidance or regulation doesn't alter the underlying challenge for banks."

 

[poledriver]

And a longer article from the Washington Post -

Obama administration clears banks to accept funds from legal marijuana dealers

The Obama administration on Friday gave the banking industry the green light to finance and do business with legal marijuana sellers, a move that could further legitimize the burgeoning industry.

For the first time, legal distributors will be able to secure loans and set up checking and savings accounts with major banks that have largely steered clear of those businesses. The decision eliminates a key hurdle facing marijuana sellers, who can now legally conduct business in 20 states and the District.

So far, the Obama administration has dealt with the legal dilemmas posed by Colorado and Washington — where state laws now allow recreational marijuana use — largely by choosing not to enforce the federal statutes. Eighteen other states allow the sale of medical marijuana — though federal law does not allow that, either.

Last year, for example, the administration said it would not challenge Colorado’s and Washington’s legalization of the drug, as long as they kept a tight rein on marijuana businesses. The administration agreed in August not to prosecute legal dealers as long as they met eight requirements, including not selling to minors.

This was not, federal officials said, a change in the law itself. Marijuana was still illegal, as far as the federal government was concerned, in all 50 states. Instead, it was just a declaration that the Justice Department had bigger things to worry about.

On Friday, the administration went a step further by laying out a path for banks to bring marijuana commerce out of the shadows and into the mainstream financial system.

The Treasury Department issued new rules that could make it easier for banks to do business with marijuana dispensers. In separate guidance, the Justice Department directed U.S. attorneys not to pursue banks that do business with legal marijuana dispensers as long as the dealers adhere to the guidelines issued in August.

A senior administration official, who was not authorized to speak publicly, acknowledged that the decision could draw legal protests from anti-legalization groups. Some lawmakers have complained that the administration is enabling an industry that is in violation of federal law.

“Marijuana trafficking is illegal under federal law, and it’s illegal for banks to deal with marijuana sale proceeds under federal law. Only Congress can change these laws. The administration can’t change the law with a memo,” Sen. Chuck Grassley (R-Iowa), ranking member of the Senate Judiciary Committee, said in a statement.

Cont -

http://www.washingtonpost.com/busin...127b04-9599-11e3-9616-d367fa6ea99b_story.html

 

[weekend addiction]

This is actually a HUGE step forward. These stores can be more profitable now, use POS systems, prove they are paying taxes, not fear being robbed, and just overall legitimizing the whole operation.