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The Obama administration Thursday afternoon announced new guidelines that will allow financial institutions to provide services to marijuana businesses in states where it is legal. The guidelines will apply to both medical marijuana and legal marijuana states.
Some 20 states and the District of Columbia allow for medical marijuana, while two states, Colorado and Washington, have legalized marijuana commerce for adults.
USA Today reports there are “eight specific conditions, including avoiding dealers who distributed marijuana to minors and those that directed revenue from marijuana sales to gangs and cartels.” Legal pot shops have asked for the help saying without banks, they were forced to be cash-only businesses. Many considered that to be a safety issue.
While the guidelines make some feel better, the American Bankers Association isn’t so sure. In a statement they noted, “guidance or regulation doesn’t alter the underlying challenge for banks. As it stands, possession or distribution of marijuana violates federal law, and banks that provide support for those activities face the risk of prosecution and assorted sanctions.”
So far, twenty states and the District of Columbia allow medical use of marijuana.
Two states, Colorado and Washington have legalized pot for recreation use.
Agencies/Canadajournal
