Friday, September 8, 2017
The medical marijuana business in Arkansas, like that in a lot of places, s shrouded in legal uncertainty. And the banking industry, being traditionally risk-averse, apparently isn't prepared to test the waters just yet. From Arkansasonline.com:
The medical marijuana business in Arkansas will not be cash only, as feared by opponents during last year's campaign for the Arkansas Medical Marijuana Amendment.
But banking services for the business will be expensive, secretive and legally dubious, according to representatives of the financial industry.
Right now, medical marijuana banking is tentatively allowed under guidance from federal regulators. According to federal figures, 368 banks and credit unions were serving the industry nationally in March, an increase of 63 from a year prior.
"The fact is that the legalization in Arkansas is not a defense for nor a cover for the legality by the federal laws, and all banks -- whether they're state chartered, nationally chartered or anything else -- are under the federal laws and regulations," said Bill Holmes, president of the Arkansas Bankers Association.
So without banking, the medical marijuana industry in Arkansas may wind up relegated to operating on a cash basis, which poses numerous financial difficulties. In addition, there is a potential crime and safety issue. Holmes went to to say:
"I'm not on a side for or against medical marijuana, but I understand why folks are concerned when you look at the problems that have arisen in some of the other states. It is a cash business at this point. With what we've had in Little Rock, let's be honest, do you want to inflame that and have cars driving around with bags full of $100 bills? I don't think so."
Little Rock, capital of Arkansas, has one of the highest crime rates in America. Cash-heavy businesses are potential targets for crime, which endangers not only the businesses, but the people involved in them as well—cashiers, delivery drivers, security personnel, not to mention the customers themselves (who better a criminal target than someone headed into a business who must be carrying cash or leaving with marijuana?).
This isn’t to say that droves of violent criminals are suddenly going to be targeting medical marijuana businesses and customers, but it does seem, at least theoretically, that a heightened crime risk exists. And therein lies a paradoxical effect embedded in the current federal drug policy: a criminal law, which among its aims should reduce crime, could actually end up generating more crime.
-- Christopher Daves