Hey, faithful followers. I am blogging today from the old casa. Back in Rickman for the night. Spending time with the family, sort of. My dude is working til 6am and then driving an hour or so to Nashville, where he will spend his day basically waiting at the VA hospital. With zero sleep, he will return to me at about 7pm. Then we will decide whether to go back to Livingston or stay another night in Rickman. My guess is we’ll just stay put. Now, onto the blog……
Have we ever covered the banking aspect of Marijuana sales? You know, faithful followers, I don’t think we have. So why don’t we do that?
Did you know that when money comes into the dispensary, they don’t just stroll down the block to the bank like normal businesses. Nooooo……
We got a mess in Washington State and Colorado. Washington State Governor Jay Inslee (D) and Colorado Governor John Hickenlooper (D) are urging Federal Banking officials to loosen the Federal Banking Regulations so state-licensed producers, growers, retailers and processors can gain access to the banking system.
Both Colorado and Washington State are in compliance with state law, so access to the banking system is a necessary component in ensuring that the Marijuana trade is regulated and will accurately track funds, prevent criminal involvement, and promote public safety.
To achieve what the Feds and State want, a tightly controlled Marijuana regulatory system, it is necessary for the legally licensed Marijuana businesses to be allowed to access the banking system.
AG Eric Holder (there’s that name again) said back in August that he “would let the recreational Marijuana laws go into effect” in Colorado and Washington State. (Mighty kind of him.) However, due to the Federal Controlled Substances Act, there is trouble for Pot businesses. What about taxes, payroll, and general banking here? Well, the banking system is kinda scary. And all this negativity is reminiscent of illegal behavior. I mean, an all cash business? That isn’t able to pay taxes? Paying their day laborers, in cash, every day? They don’t have credit cards and don’t have active checking accounts? Yeah, right….
Holder intimated that the DOJ is considering how to regulate the interactions between banks and the Marijuana industry. IF they are NOT involved in any other Federally prohibited activity. Right now, the Feds aren’t going to prosecute any of the Marijuana related businesses for money laundering or anything.
Get this. These geniuses figured out that allowing normal banking relations to take place between the banks and the Marijuana industry tracking of funds would be a plus and it would prevent diversion of funds to illegal activities. (Gosh, these guys are smart!)
The stores are set to open January 1, 2014. So let’s get it in gear, boys!!