SPRINGFIELD, IL — Illinois State Treasurer Michael Frerichs on Monday sent a letter to President Trump asking for “clear guidance” in allowing banks to do business with the marijuana industry.
Illinois is one of 28 states that allows medical marijuana under a state-supervised program.
Federal law currently prohibits banks from processing money from customers working in the legal marijuana industry, making it difficult for marijuana related businesses to do everything from opening checking accounts to securing loans, while restricting customers to cash-only transactions. Cash-only transactions can make it difficult for state regulators to properly audit sales, verify that taxes are being collected properly, and invites criminal activity at retail locations.
Frerichs sent Trump a letter Monday encouraging the administration to issue guidelines to assure that “responsible financial institutions will not face penalties or prosecution for conducting business with state-licensed marijuana cultivators and dispensaries,” according to a press release issued by Frerichs’ office.
“Medical marijuana is not right for everyone. However, its positive results for those with debilitating conditions, including Veterans and children threatened by seizures, are undeniable,” Frerichs said. “Updating our banking laws to embrace commonsense change will allow Illinois to properly manage this reasonable program, guarantee uninterrupted access to medical users, and protect financial institutions that serve the industry.”
Frerichs notes that guidance from the new regime is “particularly important” considering Trump’s nominee for Attorney General, U.S. Senator Jeff Sessions (R-AL).
Tags: banking, banks, cannabis banking, Donald Trump, Michael Frerichs, Trump Administration