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Bank Accounts for Medical Pot Businesses OK, State Says
Source: Honolulu Star-Advertiser (HI)
The state Department of Commerce and Consumer Affairs is reassuring banks and other financial institutions that they may open accounts for medical marijuana businesses in Hawaii when dispensaries start operations next year.
Iris Ikeda, DCCA's commissioner of financial institutions, issued a news release Monday after conducting a series of presentations for the heads of local banks, compliance officers and their attorneys to "address some of their concerns" if they are considering opening these high-risk accounts.
"The question has always been around whether or not banks can open marijuana-related accounts," she said. "( Federal regulators ) want to make it clear that even though marijuana is still a Schedule 1 drug, if they take a risk-based approach, they can open an account. Currently banks are not willing to open the accounts."
Although 23 states and Washington, D.C., have legalized medical marijuana, cannabis is still a "controlled substance" under federal law, making it illegal to manufacture, distribute or dispense the drug. Most banks won't touch the business in fear of being charged with money laundering. As a result, most dispensaries don't have bank accounts, can't accept credit cards and must pay their bills in cash.
Link:
Source: Honolulu Star-Advertiser (HI)
The state Department of Commerce and Consumer Affairs is reassuring banks and other financial institutions that they may open accounts for medical marijuana businesses in Hawaii when dispensaries start operations next year.
Iris Ikeda, DCCA's commissioner of financial institutions, issued a news release Monday after conducting a series of presentations for the heads of local banks, compliance officers and their attorneys to "address some of their concerns" if they are considering opening these high-risk accounts.
"The question has always been around whether or not banks can open marijuana-related accounts," she said. "( Federal regulators ) want to make it clear that even though marijuana is still a Schedule 1 drug, if they take a risk-based approach, they can open an account. Currently banks are not willing to open the accounts."
Although 23 states and Washington, D.C., have legalized medical marijuana, cannabis is still a "controlled substance" under federal law, making it illegal to manufacture, distribute or dispense the drug. Most banks won't touch the business in fear of being charged with money laundering. As a result, most dispensaries don't have bank accounts, can't accept credit cards and must pay their bills in cash.
Link:
