When Colorado Congressman Ed Perlmutter of the House Financial Services Committee asked Treasury Secretary Janet Yellen on Wednesday if she agreed that giving cannabis companies access to US banks would facilitate tax collection by the IRS, she replied “Yes, of course it would.”
No one doubts that the IRS would also love to have the cannabis industry’s billion-dollar revenue streaming into its coffers. U.S. banks would likely be delighted to get in on the action as well.
How the Banking Act will help
Here’s a start, at least from the point of view of the banks, some of whom are lobbying lawmakers to support the Secure and Fair Enforcement (SAFE) Banking Act, which is intended to create protections and to enable financial institutions that provide banking services to legitimate cannabis-related businesses.
In a recent move to push the envelope a bit, the American Bankers Association, Union National Association, United Food and Commercial Workers Union (UFCW), wrote a letter to the Senate leadership imploring them to allow legitimate cannabis businesses access to banking services. The hope, the group says, is to pass marijuana banking reform as part of this year’s National Defense Authorization Act (NDAA).
Even though the sale or use of marijuana is legal to some degree in 47 states and Washington, D.C., it's still illegal on the federal level. In states where cannabis is fully legal, financial institutions that accept weed-earned cash can face federal charges, which forces cannabis growers, distributors and retailers to perform their transactions in cash.