With the retail of marijuana in Oregon now legal, several establishments, with the help of proper business licenses, have taken advantage of the new industry by selling the processed versions of the controversial plant. But despite being granted legal status, the marijuana business in the state is still facing another major hurdle from banking institutions.
According to the Statesman Journal, over 330 legal marijuana establishments are currently operating in Oregon. However, almost all don't have proper bank accounts for their businesses.
This is because institutions including the Bank of America and Wells Fargo refuse to accept accounts opened by marijuana business owners. These banks either reject their applications or quietly close the accounts after learning the nature of their business.
These banks argue that despite pot's legal status in Oregon, using, planting and selling cannabis in other states is still considered as a crime. For them, choosing not to deal with the lucrative marijuana industry in the state is a way for them to avoid committing a federal offense.
As a result, many business owners have no choice but to rely on pure cash-based transactions for their business operations. The problem with this method, however, is that it increases their risk of getting victimized by criminals.
"By compelling Oregon business owners to operate on a cash-only basis, current federal laws are making marijuana businesses sitting ducks for violent crimes and perpetuating negative stereotypes," Democratic Senator Ron Wyden said in a statement according the Associated Press via KVAL.
"It is ridiculous to make any business owner carry duffel bags of cash just to pay their taxes," he added.
A handful of business owners, on the other hand, were able to open accounts with Maps Credit Union. However, as a way of protecting its operations, the company doesn't advertise its services and requires account holders to sign a non-disclosure contract.
The problem with major banks is only one of the issues marijuana business owners in Oregon are facing. Earlier this month, the distribution and cultivation of cannabis in over 50 percent of Oregon was banned due to the passing of the West Idaho Compromise Law. Under this legislation, marijuana businesses will not be allowed to obtain proper licenses to operate in counties that fall under West Idaho such as Baker, Harney, Klamath, Morrow and Union, according to Marijuana Politics.
