Pubdate: Thu, 03 Oct 2013
Source: Denver Post (CO)
Copyright: 2013 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: John Ingold
Page: 5A

GOVERNORS URGE SOLUTION ON POT BANKING

Colorado Gov. John Hickenlooper and Washington state Gov. Jay Inslee
on Wednesday sent a letter to federal financial officials asking for a
solution to the banking blockade against marijuana businesses.

Allowing pot shops to have access to banking services and credit-card
processing is "a necessary component in ensuring a highly regulated
marijuana system that will accurately track funds, prevent criminal
involvement and promote public safety," the governors wrote in the
letter. They asked federal officials to issue "inter-agency guidance"
that would provide an exemption from federal rules to make banks more
comfortable working with marijuana businesses.

"Our states will soon be licensing hundreds of retail stores, each of
which will, without a normal banking relationship, be forced to
conduct business on an allcash basis," the letter states. "This
creates an unnecessary inviting target for criminal activity."

Banks are reluctant to work with marijuana businesses - even ones
complying with state laws-because of federal rules against taking the
money of criminal enterprises, which all marijuana businesses are
under federal law. But, last month, a Justice Department memo lessened
the threat of criminal prosecution against state-legal marijuana
businesses that follow the rules and are tightly regulated.
Hickenlooper and Inslee wrote in their letter that the Justice
Department showed "bold leadership" in issuing that memo.