Posts tagged: John Hickenlooper
OLYMPIA — Governors from Washington and Colorado sent a letter to federal banking officials trying to get them to get a move on and develop rules for recreational marijuana businesses.
In their joint letter (insert expected marijuana joke here), Jay Inslee and John Hickenlooper reminded the heads of the Federal Reserve, Federal Deposit Insurance Corporation, National Credit Union Administration and the comptroller of the currency of a letter the governors sent last October, asking for banking policies in line with the Justice Department's memo on marijuana in states that have legalized it.
The banking officials, or their predecessors, responded last November with their own joint letter (insert second marijuana joke here) and issued some guidance in February on marijuana businesses. But they have yet to come up with instructions to banks and credit unions on how to provide banking services to state-licensed marijuana businesses.
“In the meantime, product sales have begun in Colorado and will soon begin in Washington, exposing all involved to significant risks of criminal activity associated with accepting, storing and transporting large quantities of cash that can be ameliorated by access to the banking system,” the governors wrote.
They asked bank officials “expeditiously” provide guidance to the banking institutions.
Washington expects to have some recreational marijuana stores open in late June or early July.
OLYMPIA — Governors of the two states that legalized marijuana last year are asking federal regulators to find a way that businesses licensed to raise and sell the drug can use banks.
Govs. Jay Inslee of Washington and John Hickenlooper of Colorado sent a letter to the heads of the Treasury Department, the Federal Reserve Board, the Comptroller of the Currency and other key banking regulators, asking them to come up with guidance to allow the fledgling businesses to establish accounts.
Federal banking regulations currently forbid banks from accepting money from illegal drug transactions, and the federal law classifies marijuana as an illegal drug, even though voters in the two states have passed laws making it legal for recreational use by adults.
Without bank accounts, businesses that are licensed by the state to grow, process or sell recreational marijuana will have to deal in cash, which creates “an unnecessary inviting target for criminal activity,” the governors say in their letter. It also makes it more difficult to track the flow of money and prevent diversion of some proceeds into illegal activities, they added.
Washington voters last November approved Initiative 502, which legalizes the recreational use of marijuana by adults in private, but the state Liquor Control Board is still developing rules for the businesses to operate. The board is expected to begin accepting applications for recreational marijuana businesses in November, with licenses awarded early next year and stores open by June.