Marijuana banking, money laundering and the government

Marijuana businesses are thriving in Colorado, but many in the industry say there is a crisis happening.

Since marijuana is still federally illegal, and banks are regulated by the federal government, most banks are afraid to do business with marijuana companies.

“We have had the opportunity to have banks accounts, but they have all been shut down,” said Jason Munn, vice president ot The Spot, a marijuana dispensary in Pueblo West.

In Colorado alone, the marijuana industry is expected to bring in more than a billion dollars in sales next year. All of it in cash.

“They are now in some cases having to take somewhat extreme measures to deal with this cash and obviously in a criminal environment the ways to do that involve money laundering,” Taylor West, deputy director of the National Cannabis Industry Association.

Other marijuana business owners tell KRDO Newschannel 13 that so much money combined with the inability to bank, makes them wonder if the federal government’s trying to force the businesses to commit financial crimes, so the government can then shut them down.

“These are businesses that are working very hard to be upstanding citizens and follow the law, and they’re kind of being thwarted at every turn by this particular crisis,” said West.

Some in the industry are afraid to go on camera, thinking the federal government will target them. They tell me it feels like the federal government wants them launder money, so the government can shut them down. Others think anti-marijuana lawmakers are hoping for something else.

“If you can’t bank and you’re supposed to pay your taxes, you kind of wonder are they trying to make the system fail on the back end,” wonders Munn.

This year the state of Colorado is expected to be collect $120 million in marijuana taxes. Some business owners say it’s hypocritical that the government can collect marijuana money and have no trouble banking it.

“But when it comes to the businesses, they’re having existing bank accounts shut down,” said West. “In many cases individuals will have their bank accounts shut down simply for being associated with a (marijuana) business.”

“So, it is kind of a double standard,” said Munn, “it’s funny how it’s good for the goose, but not good for the gander in that situation.”

With many banks afraid to do business with the federally illegal marijuana businesses, some business owners are now storing their cash in large purchases, such as homes and boats. Waiting for the federal government to fall in line with states like Colorado.

“This is a situation that isn’t going to get fixed,” said West, “unless Congress takes action.”