There has been a lot of questions about how legalization of marijuana laws across the United States could lead to profitable legitimate business interests due to concerns about federal blocks on banking for these firms. This has all changed as the Obama administration has opened banks to marijuana businesses, reported Fox Business Network on Feb. 14, 2014. On Friday the Obama administration issued new guidelines that potentially open up banks to marijuana businesses.
Under these new guidelines banks are now free to offer services to marijuana associated businesses in states like Colorado and Washington, where sales of the drug are now permitted. Regulators have stressed that this move will enable financial institutions to better report any possible criminal activity. The Treasury Department will now require that banks file reports dealing with marijuana businesses “to satisfy regulatory obligations in this area.”
The Obama administration has given the green light to finance and do business with legal marijuana sellers, reports The Washington Post. This is a move which could further legitimize the growing marijuana industry.
Marijuana sellers can now legally conduct business in 20 states and the District of Columbia. Furthermore, for the first time, legal marijuana distributors will be able to secure loans and set up checking and savings accounts with major banks which previously stayed away from those businesses. This move dealing with marijuana businesses by the Obama administration makes good business and legal sense.