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U.S. NEWS Thursday 14 February 2019
Congress urged to fully open

banks to marijuana industry

By MICHAEL R. BLOOD needed clarity" for more
Associated Press financial institutions to wel-
LOS ANGELES (AP) — Bank come the marijuana indus-
officials and others urged try as customers. But others
Congress on Wednesday had concerns. Republican
to fully open the doors of Rep. Blaine Luetkemeyer of
the U.S. banking system to Missouri said the proposal
the legal marijuana indus- would create confusion
try, a change that support- while marijuana remains il-
ers say would reduce crime legal at the federal level.
risks and resolve a litany of He questioned how banks
challenges for cannabis would identify criminal op-
companies, from paying erators and pointed to how
taxes to getting a loan. Congress handled hemp,
Most Americans live in the low-THC cousin of the
states where marijuana is cannabis plant, which was
legally available in some removed from the list of
form. But there's a problem federally controlled sub-
when it comes to banks: stances. With the banking In this June 27, 2017 file photo, the proprietor of a medical
Most don't want anything legislation, "we are putting marijuana dispensary prepares his monthly tax payment, over
to do with money from the the cart before the horse," $40,000 in cash, at his Los Angeles store.
cannabis industry for fear he said.q Associated Press
it could expose them to
legal trouble from the fed-
eral government, which still
considers marijuana illegal.
That conflict has left many
growers and sellers in the
burgeoning pot industry in
a legal dilemma, shutting
them out of everyday fi-
nancial services like open-
ing a bank account or ob-
taining a credit card. It also
has forced many business-
es to operate only in cash
— sometimes vast amounts
— making them ripe tar-
gets for crime.
Banking, government and
industry representatives at
a House committee hear-
ing urged lawmakers to
pass a proposal that would
allow pot businesses to ac-
cess loans, lines of credit
and other banking services,
while sheltering financial in-
stitutions from prosecution
for handling pot money.
California Treasurer Fiona
Ma, whose state is home
to the nation's largest le-
gal pot market, called the
measure a critical step for
the rapidly expanding in-
dustry.
Gregory S. Deckard, who
spoke on behalf of the In-
dependent Community
Bankers of America, said
the cloud of legal uncer-
tainty was inhibiting ac-
cess to banks while cre-
ating safety hazards for
businesses. The proposal,
he said, "would offer the