Jim Finnel
Fallen Cannabis Warrior & Ex News Moderator
Although evidence seems contrary, medical marijuana dispensary owners do have friends in high places -- it just doesn’t often seem that there are very many of them. But last week, 15 members of Congress sent a letter to Treasury Secretary Timothy Geithner asking him to establish written guidelines that would protect banks doing business with dispensaries.
In recent weeks, Wells Fargo, Chase, Bank of America and other instutions have stopped offering financial services to marijuana businesses, citing their main product’s continued illegality under federal law and concerns about money laundering. Some dispensaries in Colorado that had been doing business with the banks -- including not only checking and savings accounts but credit card processing services -- have had their accounts frozen. Money had been drawn out of customers’ credit card accounts when they made purchases at dispensaries, but the banks suspended the funds when concerns arose over possible liability.
U.S. Rep. Jared Polis, a Colorado lawmaker who has been working with the advocacy group Americans for Safe Access, wrote the letter. Thirteen Democrats and two Republicans, including influential Barney Frank, the chairman of the House Financial Services Committee, signed the letter.
“Legitimate state-legal businesses are being denied access to banking services, which does not serve the public interest,” the letter read in part. It called the refusal of financial services “an affront to fundamental fairness” and asked the Treasury Department to adopt a written policy reassuring banks that they will not be targeted by law enforcement for offering services to medical marijuana businesses in compliance with their state laws.
A spokeswoman for Bank of America told Bloomberg news service that the banks weren’t trying to be difficult, but that their hands were tied by federal law.
“We’re not making a moral decision here,” said Shirley Norton. “We’re really basing it on the law.”
NewsHawk: User: 420 MAGAZINE
Source: dscriber.com
Author: Greg Campbell
Copyright: 2010 dscriber Media, LLC
Contact: Greg Campbell | dscriber
Website: Lawmakers ask Treasury to let banks do business with medical marijuana dispensaries | dscriber
• Thanks to MedicalNeed for submitting this article
In recent weeks, Wells Fargo, Chase, Bank of America and other instutions have stopped offering financial services to marijuana businesses, citing their main product’s continued illegality under federal law and concerns about money laundering. Some dispensaries in Colorado that had been doing business with the banks -- including not only checking and savings accounts but credit card processing services -- have had their accounts frozen. Money had been drawn out of customers’ credit card accounts when they made purchases at dispensaries, but the banks suspended the funds when concerns arose over possible liability.
U.S. Rep. Jared Polis, a Colorado lawmaker who has been working with the advocacy group Americans for Safe Access, wrote the letter. Thirteen Democrats and two Republicans, including influential Barney Frank, the chairman of the House Financial Services Committee, signed the letter.
“Legitimate state-legal businesses are being denied access to banking services, which does not serve the public interest,” the letter read in part. It called the refusal of financial services “an affront to fundamental fairness” and asked the Treasury Department to adopt a written policy reassuring banks that they will not be targeted by law enforcement for offering services to medical marijuana businesses in compliance with their state laws.
A spokeswoman for Bank of America told Bloomberg news service that the banks weren’t trying to be difficult, but that their hands were tied by federal law.
“We’re not making a moral decision here,” said Shirley Norton. “We’re really basing it on the law.”
NewsHawk: User: 420 MAGAZINE
Source: dscriber.com
Author: Greg Campbell
Copyright: 2010 dscriber Media, LLC
Contact: Greg Campbell | dscriber
Website: Lawmakers ask Treasury to let banks do business with medical marijuana dispensaries | dscriber
• Thanks to MedicalNeed for submitting this article
