Legal marijuana sales in Colorado surpassed $5 million this week, but marijuana shop owners have had to resort to old school tactics like hiding cash stacks in their mattresses because banks are refusing to accept their money. The banks will not set up accounts for marijuana businesses — recreational or medical — because although the sale is legal in the state, banks aren’t sure if it’s technically legal under banking regulations, and they’re worried that they will be penalized on the federal level.
The New York Times described the current plight of the business owners:
The limitations have created unique burdens for legal marijuana business owners. They pay employees with envelopes of cash. They haul Chipotle and Nordstrom bags containing thousands of dollars in $10 and $20 bills to supermarkets to buy money orders. When they are able to open bank accounts — often under false pretenses — many have taken to storing money in Tupperware containers filled with air fresheners to mask the smell of marijuana.
Beyond the logistical headaches, there is a warranted fear of holding that much cash. “Carrying such large amounts of cash is a terrible risk that freaks me out a bit because there is the fear in my mind that the next car pulling up beside me could be the crew that hijacks us,” said one business owner. “So, we have to play this never-ending shell game of different cars, different routes, different dates and different times.”
This issue is a concern for law enforcement and elected officials as well. Colorado’s senators and representatives wrote in to the Treasury and the Justice Department to request that they clarify the banking regulations so that business owners can begin to deposit their money in a safe way.
The possibility of a cash-only system has raised significant public safety concerns for customers and employees who must now handle and transport large quantities of cash. Additionally, a cash-only system may make it more difficult for the state and federal government to regulate and audit these facilities. Finally, without access to the banking system, it may become easier for retail stores to avoid sales tax collections, which would diminish funding for marijuana enforcement activities and Colorado school construction.
Hopefully they can get this all sorted out before any major theft or worse occurs. There should have been a better implementation plan in place to avoid this dangerous atmosphere that’s been created.