I have a ?????,,,,seems to me one of the major problems with legal weed is where to put the money,,,,from what I understand you can not put that money in the bank because its considered drug money ,,,my ??? is this if you own a pot store and pay your tax's,,,where does the state put that money do they have bank accounts ,,if so that's money laundering ,,,or do they have away around that
legal money
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umbra
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When a State collects taxes, it isn't segregated into weed taxes and property taxes and sales tax. It all goes into 1 account. Bank's have different charters. Some are state by state and others are Federal and applies to all states. CO was doing banking reform to address this problem. CA has never had a problem with this.
Huh? Weed business is all cash business out here in the west. Banks are all FDIC, and that is federal. As a schedule 1 narcotic classified drug, banks cannot do business with any marijuana business in the US. Its all cash. Payroll is paid in cash. Transactions are all in cash buying and selling any marijuana product. Payment of taxes to the state and feds by marijuana companies are all made in cash. Now, the banks do count cash and do a lot of cash payouts from non-marijuana accounts that support the marijuana business trades. And employees can deposit cash in their bank accounts paid by marijuana company employers. But there is no direct account link from their employers to their banks. No marijuana stores here take credit cards either. Its all cash sales. Period. Many have cash machines in the stores though. Use your ATM to get cash, and pay in cash. So far the feds have agreed to take tax payments in cash from 'legal' state marijuana growers, processors and retailers without prosecuting them for drug money laundering. They also allow the legal states to do the same. That avoids the Al Capone tax evasion problem of the other prohibition days.
Colorado has been in the process of setting up an alternative to banks for marijuana business, but they cannot use a bank in the US to get around the laws. So they set up a specialized credit union, and it was given tentative approval, but it is not in place yet. It has been tied up in court, with one court ruling against it and a higher court turning over that decision. It may have to go to the Supreme Court. In the meantime Fourth Corner Credit Union has to comply with requirements set up by the Federal Reserve. The Federal Reserve Bank stipulates that Fourth Corner cannot provide financial services to marijuana-related businesses until doing so is legal at the federal level. So there is still no credit union for marijuana business in Colorado, or in any other state, including California. In California cash has been a big problem up to about a year ago, when state and local police simply raided medical pot shops and took all the cash. Now that weed is legal at the state level, they cannot do that any more. California also tried to pass a bill this year to set up an alternative "bank" for marijuana business in state, but that has failed to this point. SB-930, a bill that would have created a state-chartered banking system to give cannabis merchants access to traditional financial services in California died Aug. 16 in the state Assembly Appropriations Committee. See, states cannot set up banks in the US. Only the feds can print money and regulate banking.
So... they all have to deal in cash, and in cash we trust. Until... the Supreme Court changes things, or marijuana is re-classified as a lesser than schedule 1 narcotic. The DEA has stuck with mj being schedule 1, so Congress will have to change it, with a POTUS signature or override of his veto. Or 38 or more states ratify an amendment to the US Constitution legalizing weed. 33 states now have legal weed of some type, either medical or recreational. 5 more to go.
Colorado has been in the process of setting up an alternative to banks for marijuana business, but they cannot use a bank in the US to get around the laws. So they set up a specialized credit union, and it was given tentative approval, but it is not in place yet. It has been tied up in court, with one court ruling against it and a higher court turning over that decision. It may have to go to the Supreme Court. In the meantime Fourth Corner Credit Union has to comply with requirements set up by the Federal Reserve. The Federal Reserve Bank stipulates that Fourth Corner cannot provide financial services to marijuana-related businesses until doing so is legal at the federal level. So there is still no credit union for marijuana business in Colorado, or in any other state, including California. In California cash has been a big problem up to about a year ago, when state and local police simply raided medical pot shops and took all the cash. Now that weed is legal at the state level, they cannot do that any more. California also tried to pass a bill this year to set up an alternative "bank" for marijuana business in state, but that has failed to this point. SB-930, a bill that would have created a state-chartered banking system to give cannabis merchants access to traditional financial services in California died Aug. 16 in the state Assembly Appropriations Committee. See, states cannot set up banks in the US. Only the feds can print money and regulate banking.
So... they all have to deal in cash, and in cash we trust. Until... the Supreme Court changes things, or marijuana is re-classified as a lesser than schedule 1 narcotic. The DEA has stuck with mj being schedule 1, so Congress will have to change it, with a POTUS signature or override of his veto. Or 38 or more states ratify an amendment to the US Constitution legalizing weed. 33 states now have legal weed of some type, either medical or recreational. 5 more to go.
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in massachusetts, they allow credit cards with a pin to purchase products. i am guessing if you use a pin, the transaction is like a cash transaction. maybe that is the way to get around the feds?
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umbra
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Cascadia not sure how many commercial growers you know in Cali. I know a couple. While what you say has a ring of truth to it, it's not how the people I know do business. They got a lawyer who recommended a particular bank. They setup a LLC and the bank charged them a special fee. Excessively high fee for this service and he writes all his employees checks. Commercial growers collect the tax from the dispensaries when they sell it to them and the growers pay the taxes to the State …. none of it is cash, Growers send it in the mail like any other bill they pay.
They are just using it like a cash machine that way. Thus there is no direct link to a bank and the point of sale. Its the same as having an ATM machine in the lobby, as they do here in Oregon. Also some 3rd party companies like Tokken are using blockchain to insulate the sales and using pin codes to complete the transaction.
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Yes, apparently things have changed in the last year or so, but it all remains in a state of flux. As the federal laws are now, the FDIC will not insure a payment processor or financial institution working with a marijuana business until weed is decriminalized at the federal level. While it seems that newer specialized banks provide checking accounts expressly for the marijuana industry, it is a clear violation of federal law. A lot of banks bailed out of marijuana banking after Sessions rescinded the Obama-era Cole memo. At the same time Congress has adopted the Joyce Amendment which barred the Justice Department from spending resources to go after state-legal marijuana businesses. So this banking workaround is on shaky ground and at the mercy of the feds and the push-pull at the federal level. Jess Sessions is out now, and the acting AG has not taken a stand either way on the marijuana industry. The nominated AG, William Barr has had a tough stance on drugs in the past. Hard to say what he will do, or what Congress will do in the future.
The New York Times did a good review of this earlier this year.
https://www.nytimes.com/2018/01/04/...repreneurs-go-when-the-banks-just-say-no.html
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umbra
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There is 1 thing you are not considering, John Boehner is making money from cannabis and he and his pals are not going to jail for it. If there was even the slightest chance of him and his pals loosing their money or their freedom, they wouldn't do it. Marlboro just invested $1.3 billion dollars in the weed industry. Nobody tasks those kinds of risks with that kind of money.
I am well aware of the big investments being made in Cannabis, particularly by Corona Brewing and Altria (the parent company of Marlboro). However, if you look at the $1.8 billion investments made by Altria, they are in Canada where marijuana is legal now, in a company called Cronos. Also Corona is investing nearly $4 billion in Canopy Growth, which is also in Canada. Big money, yes. Invested in the US? no.
I am up to date with the legalization process currently under way in Mexico and the fact that hemp will be declassified as a schedule 1 narcotic in the US soon if Trump signs the 2018 Farm Bill which was just passed by congress. However, I am also aware of who is POTUS and his wishy washy stances on things, and the current conservative leaning SCOTUS. Also the shakeup at the DOJ and the newly nominated AG. Jeff Sessions tossed out the Cole memo, and the banks all flinched. Many shut down their dealing with mj companies overnight. The feds can still pull the plug on mj baking.
Make no mistake, I am all for legalization. However, it is not a done deal. Until the feds remove marijuana from being a schedule 1 narcotic, legal banking cannot be done with marijuana businesses and legal research cannot be done on marijuana. That of course does not mean that they are not being done. The later is also pure evil in my book as well as a crime against humanity. But that does not sway the feds or the DEA. Nor has my personal opinion on this matter. As for risk taking, $BILLIONS were bet on Bitcoin this time last year. And now? Nearly a $TRILLION has been lost on BitCoin since then. The size of any investment does not make it a sure thing.
I am up to date with the legalization process currently under way in Mexico and the fact that hemp will be declassified as a schedule 1 narcotic in the US soon if Trump signs the 2018 Farm Bill which was just passed by congress. However, I am also aware of who is POTUS and his wishy washy stances on things, and the current conservative leaning SCOTUS. Also the shakeup at the DOJ and the newly nominated AG. Jeff Sessions tossed out the Cole memo, and the banks all flinched. Many shut down their dealing with mj companies overnight. The feds can still pull the plug on mj baking.
Make no mistake, I am all for legalization. However, it is not a done deal. Until the feds remove marijuana from being a schedule 1 narcotic, legal banking cannot be done with marijuana businesses and legal research cannot be done on marijuana. That of course does not mean that they are not being done. The later is also pure evil in my book as well as a crime against humanity. But that does not sway the feds or the DEA. Nor has my personal opinion on this matter. As for risk taking, $BILLIONS were bet on Bitcoin this time last year. And now? Nearly a $TRILLION has been lost on BitCoin since then. The size of any investment does not make it a sure thing.
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