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And A Grower Or A Processor— which Under Pa Law Needs $250,000 On-hand To Be Considered For A License — could Have To Stash Millions.

Most major banks won’t work with marijuana-related businesses for fear of running afoul of federal regulations that stipulate marijuana is a Schedule 1 drug. And that’s expected to create real problems for marijuana-related businesses here in Pennsylvania, as it has elsewhere. Steve Schain, a Pennsylvania-based attorney with the Hoban Law Group who consults for marijuana-related businesses, said the majority of banks, credit unions and credit card companies won’t provide these businesses with financial services, sometimes leaving the sellers sitting on mountains of cash. What could that mean for businesses operating in this $7 billion a year industry? While there’s little consensus around how much dispensaries actually make, most marijuana-related businesses would have to store thousands of dollars in cash without a bank. And a grower or a processor— which under PA law needs $250,000 on-hand to colorado marijuana be considered for a license — could have to stash millions. Schain said that under the federal Controlled Substances Act, growing, producing and even selling and possessing marijuana is “100 percent illegal.” That would mean that, in theory, under the Bank Secrecy Act, banking with these companies would be illegal for the financial institution and could constitute money laundering for the seller. What makes it more complicated is multiple “guidances” released by both the Department of Justice and the Department of Treasury about the enforcement of marijuana-related business taking place in states that have legalized the drug in one way or another. Under the Obama administration, the Department of the Treasury’s Financial Crimes Enforcement Network in 2014 released a guidance that indicated banks can probably avoid being punished for working with marijuana-related businesses in states that have legalized the use of the drug.

To read more visit https://billypenn.com/2017/06/14/medical-marijuana-businesses-in-pa-have-a-cold-hard-cash-problem/

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