Move May Force Producers to Move to a Cash-only Payment System
Eight months after the federal Department of Justice and Treasury Department announced new guidelines allowing banks to work with marijuana businesses, some of the credit unions in New Mexico sent letters to almost half of the State’s licensed medical marijuana producers saying they will no longer accept their business and proceeded with closing their accounts.
The credit unions claim that they are unable to comply with federal guidelines for servicing the accounts. This move leaves producers in the lurch, with either having to operate on a cash-only basis or scramble to find another financial institution willing to take their business.
In February, the Obama Administration announced new guidelines that will allow banks to legally provide financial services to state-licensed marijuana businesses. Twenty-three states and Washington D.C. have legalized marijuana for medical use; two of those states (Colorado and Washington) recently legalized marijuana like alcohol.