SALT LAKE CITY — Utah Lawyer Normal Sean Reyes and Treasurer David Damschen are calling on Congress to cross a invoice that enables marijuana-related companies to entry the banking system.
In a letter signed by 34 state attorneys normal, Reyes urged assist of the Safe and Honest Enforcement Banking Act. In an announcement to FOX 13, Reyes mentioned it could assist Utah’s newly up-and-running medical hashish dispensaries.
“Utah labored arduous to discover a wise, humane and balanced method to medical marijuana coverage. However present federal regulation prevents entry to insured monetary establishments for companies on this business. That creates vital sensible and public questions of safety for each most people and for Utah companies legally working within the medical hashish house,” he mentioned.
The thought additionally has assist of the Utah Banking Affiliation.
“The lack of insured monetary establishments to deal with cannabis-related transactions has compelled companies and governments all through the U.S. to resort to cash to settle transactions. This represents an infinite public security difficulty, growing threat of violent crime, fraud, and theft. Offering regulated and insured monetary providers to hashish companies permits regulation enforcement, and particularly the Monetary Crimes Enforcement Community (FinCEN) throughout the U.S. Division of Treasury, the transparency wanted to tell apart authorized hashish companies from criminal activity,” Damschen mentioned in an announcement.
Below federal regulation, banks and different monetary establishments are prohibited from offering providers to marijuana-related companies. That is led to “cash solely” transactions at dispensaries. The SAFE Banking Act would enable them to direct deposit and use bank cards. The invoice has bipartisan assist and the letter signed by AG Reyes was additionally bipartisan.
As an apart, the letter pointed to the issues with cash-based hashish transactions through the COVID-19 pandemic.
“The COVID-19 pandemic has sharply centered the necessity for legislative reduction in three key respects. First, threats to public security brought on by a cash-intensive enterprise model, usually the goal of prison exercise, have intensified within the months because the pandemic started. Subsequent, the presence of enormous cash transactions locations regulation enforcement, tax regulators, shoppers, and sufferers at heightened threat of publicity to the virus. Lastly, the flexibility to effectively gather tax income from the marijuana business, estimated to have generated $15 billion in gross sales in 2019, will present important reduction for state and native governments predicting finances shortfalls because of the pandemic,” the letter states.
Utah voters permitted medical hashish in 2018 and the state applied a extra inflexible management system shortly afterward. A number of dispensaries have now opened within the state.
The letter was additionally signed by Nevada Lawyer Normal Aaron Ford. Nevada voters permitted leisure hashish gross sales in 2016.
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