The federal government unfairly penalizes state-legal marijuana businesses whose owners have been convicted of marijuana-related crimes, restricting them from loans and other banking tools, a group of U.S. Senate and House Democrats wrote to the Treasury Department asking for a change in policy.
The group of 20 lawmakers, who mostly represent states where recreational marijuana is legal, said in a Tuesday letter that 2014 guidance from the department’s Financial Crimes Enforcement Network to put “red flags” on marijuana businesses hurts the businesses’ chances of securing banking services or loans.
The warnings from a federal regulator unfairly restrict access to a fast-growing industry that’s legal in many states, the lawmakers said.
“Under this red flag guidance, a marijuana business owner with a marijuana conviction may be permitted to participate in a state licensing program on paper, but in practice may be unable to access a bank loan to grow her business because she is considered a high-risk customer,” the lawmakers wrote.
Click here to read the rest of the article written by Jacob Fischler over at Maryland Matters
