Pubdate: Sat, 25 Jan 2014
Source: Herald, The (Everett, WA)
Copyright: 2014 The Daily Herald Co.
Contact:  http://www.heraldnet.com/
Details: http://www.mapinc.org/media/190
Author: Jerry Cornfield

BANKS RELIEVED BY POT NEWS

OLYMPIA - Attorney General Eric Holder's willingness to allow banks to
deal with marijuana businesses is welcome news for state leaders,
entrepreneurs and bankers worried by the prospect of conducting all
transactions in cash.

And they want the Obama Administration's top law enforcement official
to roll out his promised rules before the legal growing and selling of
pot begins across Washington.

"It's a positive sign," Denny Eliason, lobbyist for the Washington
Bankers Association, said Friday. "We are very hopeful that the
guidance from the Justice and the Treasury departments and other
regulators will be substantive. What we understand is it should come
sooner than later."

Marijuana businesses, even ones that will soon be licensed in this
state, are considered criminal enterprises under federal law, which
makes handling their money a crime in the eyes of the Department of
Justice.

As long as financial institutions fear prosecution, owners of
marijuana businesses will be hard-pressed to open a bank account,
secure a line of credit, obtain a loan or allow the use of debit and
charge cards for purchases.

It's an urgent concern in Washington and Colorado, the first states to
legalize recreational use of marijuana. Colorado's retail sales began
this month.

Gov. Jay Inslee and Colorado Gov. John Hickenlooper urged Holder last
year to intercede. They told him it's not farfetched to imagine store
owners paying taxes with suitcases of money and keeping large sums of
cash in safes, making themselves inviting targets for criminals.

Holder, whose underlings have worked on the issue for months, endorsed
changes for the first time publicly on Thursday. In an appearance at
the University of Virginia, he said it is important from a law
enforcement perspective to enable places that sell marijuana to have
access to the banking system so they won't have large amounts of cash
lying around.

"This is one of the most important unanswered questions we've been
grappling with," said Jaime Smith, an Inslee spokeswoman. "We're
looking forward to hearing how the feds think we can move forward in
addressing this issue."

Attorney General Bob Ferguson is keeping close tabs on the process
too, though he's not been in contact with Holder on potential language
for any regulations, his staff said.

"The state has been focused for some time on addressing the potential
public safety issues created by current federal banking regulations,"
Ferguson spokeswoman Janelle Guthrie wrote in an email. "We are
encouraged by AG Holder's comments (Thursday) and we look forward to
seeing additional details when they are released."

Washington lawmakers called Holder's comments a big deal because new
federal rules will enable marijuana businesses to be integrated into
the state's commerce system.

"It's a good decision," said Rep. Mary Helen Roberts, D-Lynnwood. "It
helps treat them as just another business. It will help normalize things."

Holder did not indicate when the regulations would come out. Attempts
to get clarification from the Department of Justice on Friday were
unsuccessful.

Eliason said banks will be able to offer services pretty quickly once
they are known.

The Washington State Liquor Control Board is doing "really good work"
in evaluating the backgrounds of those seeking licenses to get into
the marijuana business, he said. That will help financial institutions
know who they can do business with, he said.

"It won't take long," he said. "Our industry is just waiting for words
on paper."  
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MAP posted-by: Jo-D