By Steven Schain
Ever accidentally find $5.4 billion of cash in your back pocket?
The cannabis industry did in 2015, after virtually no bank would accept legalized marijuana sales deposits.
Instead, because the Comprehensive Drug Abuse Prevention and Control Act, 21 U.S.C. Section 801, Et. Seq (1970) (Controlled Substance Act), prohibits “manufacture, distribution, and dispensation” of cannabis and any transfer or deposit of monies yielded from cannabis sale may be deemed “money laundering” in violation of the Currency and Foreign Transactions Reporting Act, 31 U.S.C. Section 5311-5330 (Bank Secrecy Act), most banks, credit unions and credit card companies refuse to provide marijuana growers, processors or dispensers with financial services.
As a result, licensed and regulatory compliant marijuana-related businesses are sitting on mountains of cash, while, in light of unclear legal exposure, immeasurable risk management, and nearly impossible regulatory compliance, hungry banks view accepting cannabis cash as insufficiently lucrative to pursue. [Read More at The Legal Intelligencer]