Why Alabama’s medical marijuana industry might be cash-only

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Because marijuana is still banned under federal law, involvement in the marijuana business poses a risk for banks, which face strict regulations against supporting illegal activities and money laundering. 🪴

The Alabama Medical Cannabis Commission meets on Aug. 11, 2022 in Montgomery. Alabama became the 37th state to legalize medical marijuana when lawmakers approved a bill last year. But marijuana remains illegal under federal law as a Schedule I controlled substance, the most restrictive category.

Bank regulators and bank associations want Congress to provide clarity. The Secure and Fair Banking Enforcement Act would prohibit federal regulators from penalizing banks for providing services to legitimate cannabis-based businesses. But the bill has repeatedly stalled in Washington. Hill said the Banking Department’s message is that medical cannabis is legal in Alabama but that bankers should proceed with caution. He said that means a greater degree of due diligence than banks follow with most categories of prospective customers.

“Congress is the one that has to correct it and we’re working very hard with our national association to get Congress to change that,” Hill said. “Being a cash-based industry is more than an antiquated logistical problem in a world of digital commerce; it creates a 21st century Wild West in which armed hold ups and storefront heists are a daily industry reality,” Pellicciotti wrote.

“When you’ve got that hanging out there about the legality of it, the banks are in my opinion wise to step back and say, ‘I need some more guidance, I need some more clarity before I can do this,’” Latham said.“If I’m in the cannabis business and you are my landlord, are you impacted?” Latham said.

 

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Do you want to see your daughters doing drugs? Do you want a neighbor doing drugs? If you vote yes to dope, we will vote you out of office.

The ghetto of Birminghood can’t wait.

If you legalize marijuana in Alabama it's a death sentence to our youth. Today a joint tomorrow a needle in your sweet little girl or boy. Marijuana is a gateway drug. Do you want to live next door to a family that has a few of these druggies living with them?

So, like, the way it’s always been?

The more things change, the more they stay the same.

All of them are...

That’s the standard in legal States anyways

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