4/9/2016 – La Pine, OR. 97739 – Green Knottz
Cannabis banking is not noticed as a foreign issue anymore – the legitimate cannabis business and black market is precipitating and evolving. If you are a legitimately licensed and insured cannabis business of any sort – banking in the customary sense is inapplicable. I’ve heard from countless dispensaries about how they cannot get a business account through a bank or if they do it eventually gets shut down.
Many people are moving into the cannabis business in America because America has failed us and a small family can make a decent living or even just get by with cultivating, processing, or dispensing cannabis. Everyone needs a bank to get by – you have automatic withdrawals, checks, security, and organization for your checks and balances. But if you are a cannabis affiliate of any sort… you are considered a non-citizen and are scrutinized for every dollar you make for your family. Oregon, Washington, Colorado, and soon to be California all allow recreational cannabis to cultivate, distribute, sell, and process – but again you are still considered an outcast even though you pay for current licensing and operate within state law. America was founded on the basis that an individual can be free and treated fairly equally to build a business for themselves to provided a living for their intermediate families but things have taken a sheer land slide since then. Now, there are so many laws and regulations that remit us from creating our own small businesses that America merely is not the place where a family can get by.
The root cause of all these issues stems from the lack of our governments common sense and leadership – (congress and the federal government). If they had interest in the people of America – to help them – things would be very different. Although Kate Brown – governor of Oregon recently passed a law allowing banks to accept money from legitimate cannabis businesses her efforts seem perilous since the federal government oversees the banks. You still cannot continue to use the banks for cannabis related businesses unless you lie to them which at this point – is your only option.
An anonymous party recently conveyed to brokeringlbs their issues with banking and how their accounts were recently closed. We asked them what happened and why they suddenly cancelled their accounts… The LLC responded that they had used that bank for years and since they moved into the cannabis market they had to keep from referring to cannabis at all. They also said they had their accounts for over a year but after a check from an employee got cashed with the LLC’s business name on it – Washington Federal had caught wind of what was going on. A letter was sent to the LLC’s mailbox enclosed with a piece of paper for each account stating that they were closing those accounts for a reason that was not being stated and if there were any questions that they could call the number above… there was no number. One of the LLC’s members went into the bank to see what the reason was which at that time they had learned it was because of an employee just cashing their check like any other citizen. The managing LLC’s member asked Washington Federal’s manager if they were blacklisting him and they replied,” we are just not allowing you to open any account at this time.”
We feel for the businesses that are forced to lie and backslide to their local banks because when you run a legitimate business you need accounts for many purposes. This is America – we should have the security and support of our government allowing us to survive and build what was once said to be “The American Dream”. There are service providers that will allow you to process credit cards transactions with high interest rates for cannabis businesses but where is that money going if not a bank…? States say oh yeah.. we will allow cannabis but we wont push for banking reform on a federal level. It is apparent that we have two governments – federal government and us – which one will prevail is the question.
It seems in this day and age the only way for a cannabis business to obtain banking is by getting a Personal Checking account and running their business through that. You still have the benefit of processing and receiving credit transactions and storing your money as long as you do not hint any relation of cannabis to your local bank. There are also a few credit unions that will allow banking for cannabis businesses but they are few and far between.
–Green Knottz Staff–