John Hickenlooper to Establish New Banking System for Legal Businesses Dealing with Cannabis Essay

Submitted By xix3dedi3xix
Words: 535
Pages: 3

John Hickenlooper the Governor of Colorado to open new banking system that could allow the banking for the legal businesses dealing with cannabis. This was after the big complain that this exposed them to major risks in handling the proceeds. The bankers association in the region was quick to rubbish the bill terming it as impractical and one that will bear no fruit. The federal government has listed the business as illegal and thus banks will be violating the law despite the outcry from the merchants running the million dollar companies of cannabis (Marijuana Policy Group for the Colorado Department of Revenue, 2014). This then leaves the banking industry with a slimmer option on how to assist them as they also risk losing their reputation in the process. The businessmen are unable to access financial services as they cannot be allowed to open accounts with the banks in the region. Despite the booming nature of the business, the proceeds from them can’t be taken up by the banks as they will be assumed to be supporting and practicing money laundering according to the federal law.
Politicians and celebrities benefitting either from the business or use of the drug have been holding campaigns, demonstrations and appeals to the banking sector to allow and legalize banking of money from sector. Outrageous business partners known as The Fourth Corner sought state accreditation to apply for the master account (Jeffrey & Rachel, 2014). This would give them access to deposit cash and have them wired electronically to other places. This then should serve as an eye opener to many in the business as an avenue to have their cash transferred to overseas countries. It can then be used for investment and the value ploughed back to them. The owners have to spend millions of shillings employing armed guards to safeguard their money and this also gives rise to the crime rate of the state. For as long as they are not allowed to bank the cash directly, such avenues can serve for them at the expense…