The cannabis industry in the U.S. state of Washington has been served by several banks and credit unions since Initiative 502 passed in 2012, legalizing production, distribution, retail sales and possession in the state.
Banks and credit unions[edit]
Three banks and Three credit unions – O Bee Credit Union in Tumwater since 2014, Numerica Credit Union in Spokane and Salal Credit Union in Seattle – handle most of the accounts. As of 2017[update], the state took in 95% of its cannabis tax revenue through banks (vice cash) and the Washington State Department of Revenue requires electronic funds transfer for tax payment, unless the taxpayer is unable to open a bank account.[1][2]
Federal regulation[edit]
Washington's governor and United States Senators have attempted to preserve U.S. Department of the Treasury FinCEN rules in place since 2014 allowing banks to do regulated transactions with the industry, despite conflicting laws on legality at the Federal level.[3][4]
Alternatives to banks[edit]
Some Washington cannabis business, particularly at point of sale, is conducted in cryptocurrency.[5] Some use Square point-of-sale system,[6] although it has also been reported that PayPal and Square will terminate accounts from cannabis-related businesses.[7] A cashless transaction system was created by POSaBIT and used in Washington cannabis establishments c. 2017. It would convert US dollars from a customer's debit card swipe to cryptocurrency for expenditures made at the retail establishment.[8][9]
See also[edit]
References[edit]
Sources[edit]
- Lester Black (April 19, 2017), "The Credit Unions and Small Banks That Solved the Cannabis Cash Crisis", The Stranger
- Gordon Friedman (December 23, 2015), "The best kept banking secret in the marijuana industry", Statesman Journal, Salem, Oregon
- John McKay (May 29, 2014), Washington and Colorado governors pressure Feds to allow banks to take pot money, Tri Cities, Washington: KFLD
- Carla Altepeter (May 20, 2014), "Numerica Credit Union's Carla Altepeter: Opening Accounts for Marijuana Businesses is 'In the Best Interests of Our Members and Their Communities'", Anthem, Northwest Credit Unions Association
- Katy Sword (January 19, 2018), "Murray, Cantwell say legal marijuana relies on banking: Senators urge feds to keep rules that allow access to banks", The Columbian, Vancouver, Washington
- Alex Pasquariello (February 15, 2018), "Feds working on new marijuana banking guidance, Treasury Secretary Mnuchin tells Congress", The Cannabist, The Denver Post
- Jennifer Kaplan (June 13, 2017), Bitcoin Is Helping the Pot Business Get Over Its Banking Problem
- Jose Pagliery (April 29, 2013), Legal marijuana's all-cash business and secret banking, CNNMoney
- Hilary Bricken (September 8, 2015), "What's In Your Dispensary's Wallet?: Marijuana Merchant Processing", Above the Law (blog)
- Taxes due on marijuana (official website), Washington State Department of Revenue, retrieved 2018-03-17,
You must also pay your taxes through My Account. Per Revised Code of Washington 82.32.080, businesses are required to electronically pay excise tax returns unless a waiver has been granted. Failure to pay the excise tax returns electronically may result in a penalty being assessed.
- Moore, Chris (June 20, 2017), "Lack of Legal Banking Options Pushing Canna-Businesses Towards Bitcoin", Merry Jane
- Levy, Nat (2019-08-05). "Good news for card-carrying potheads: Seattle startup raising funds so you don't have to use cash". GeekWire. Retrieved 2019-08-14.
Further reading[edit]
- BSA Expectations Regarding Marijuana-Related Businesses, US Department of the Treasury Financial Crimes Enforcement Network (FinCEN), February 14, 2014, FIN-2014-G001
External links[edit]
- Marijuana in Washington State - Financial Services Issues, Washington State Department of Financial Institutions
- Marijuana Tax Reporting Guide, Washington State Liquor and Cannabis Board, 2016
- Cannabis industry, Salal Credit Union
- Marijuana banking updates at FinCEN "Frequently Requested FOIA-Processed Records" site