• 30
  • September
    2011

The sale, possession and use of medical marijuana is legal in Colorado, as well as in 15 other states and the District of Columbia. However, marijuana in any form - medicinal or otherwise - remains strictly illegal under federal law. This means that while the owners of medical marijuana dispensaries may be immune from state prosecution, they could still face federal charges.

For the owners/operators of medical marijuana dispensaries, this situation not only leads to uncertainty and confusion about their true legal status, but financial problems as well.

One of the major challenges confronting these businesses is the lack of any proper banking support for their commercial activities.

Simply put, banks in Colorado and elsewhere have begun to refuse taking the business of medical marijuana dispensaries out of fear that they will be swept into federal investigations/prosecutions if they provide services.

This fear is not unfounded. The U.S. Department of Justice has clearly stated its position: banks which service marijuana dispensaries are supporting activities illegal under federal law. Moreover, the Department has recently updated its guidance to federal prosecutors, directing them to take a tougher stance on medical marijuana than in prior years.

Here in Colorado, medical marijuana dispensary operators face a much more difficult financial struggle than those in states such as California, where medical marijuana is better established and thus more profitable, making this business perhaps more difficult for banks to refuse.

In fact, some operators in Colorado have even reported having to move through multiple banks and credit unions, as successive institutions close their business accounts.

It is worth noting that Congressman Jared Polis (D-Co.) has begun work on federal legislation to help insulate banks from prosecution for servicing medical marijuana dispensaries.

Yet even if this problem is corrected, so long as the difference between federal and state criminal law remains, Colorado medical marijuana dispensaries will likely continue to face different forms of legal roadblocks.

Stay tuned for more news from our Denver criminal defense blog ...

This post is provided for informational purposes only and is not to be construed as legal advice.

Source:

Fox Business "Banks in Medical-Marijuana States Going to Pot?" Sept. 19, 2011