Thinking Clearly

Drug Laws Ease but Bankers Still Say 'No' to Dealers

by: Matt Villano at American Banker

   

"All it takes is one U.S. attorney who decides to enforce federal laws, and they can go after any bank that's banking these businesses as an accomplice."

 

 One of the main hurdles for would-be bankers to marijuana businesses is Section 841 of Title 21 of the United States Code. Also known as the Controlled Substances Act, the specifics of this law ramble on for pages. But the statute quite clearly outlaws marijuana at the federal level, and enumerates punishments and penalties—including imprisonment and fines—for those who traffic the substance, and for their accomplices.

...

 "Anyone who aids, abets, or facilitates this activity, by loaning money or providing financial services, is open to federal prosecution,"

 So the growing acceptance of marijuana as a legal substance, at least in some states, continues to complicate the compliance picture for businesses attempting to stay on the right side of state and federal laws. 

 

Without some sort of clarification, the ABA's Rowe says, banks will continue to eschew would-be customers in the marijuana business.

And for marijuana sellers seeking a greater sense of legitimacy, and perhaps also for banks eager to find new sources of growth, that's just a drag.