SEATTLE — Marijuana dispensary owners say they want change– and not the kind that jingles in your pocket. Since recreational weed was legalized more than a decade ago, pot shops in Washington have proven to be prime targets for thieves.
“Everyone living around here knows that it’s not safe being cash-only as a business,” said a manager at Pot Shop Seattle.
However, the U.S. Drug Enforcement Agency recently said they intend to reclassify marijuana as a less serious drug, and the move has created new hope for pot shop owners who wish to open bank accounts.
“The SAFE Banking Act will allow this product that voters approved overwhelmingly in Washington state to now get access to financial services,” said Rep. Marilyn Strickland, D-Washington.
SAFE stands for Secure and Fair Enforcement Banking. Strickland said it is quickly gaining momentum on Capitol Hill. In past years, the act has failed to reach a floor vote, but lawmakers like Strickland now think it could have a better chance of passing because of the DEA’s pending change of heart about cannabis.
“I think the question becomes, you know, we pass it in the House, is it gonna go to the Senate and pass? And will it get to the president’s desk?” said Strickland. “This is a bipartisan bill.”
Even though Washington was among the first states in the nation to legalize recreational marijuana, sales of the product still break federal law. That is why banks have been reluctant to work with them.
“As an executive of a bank, I have a fiduciary responsibility to make sure that we are not laundering money through our financial institution, which has been around for 107 years,” said Brent Beardall, president and CEO of WaFd Bank. “It’s an unacceptable risk to take.”
But because of the reclassification, there’s a renewed push in Congress to eliminate the risk for banking institutions like WaFd.
“We could bank marijuana– and marijuana-related businesses– like we could do anyone else,” said Beardall.
Beardall said banks like his have not been reluctant to work with pot shops for any reasons other than their concern that they could face repercussions.
“Believe me, us as bankers, we want to be able to bank the industry,” said Beardall. “We want to be able to help. But we also have to balance that with our fiduciary responsibility.”
He believes giving pot shops more access to banking services will mean a safer environment for both employees and customers.
“The poor marijuana shops that are trying to supply customers with something that they want– that’s following state law– yet, they put themselves at risk because they have to deal with this inordinate amount of cash. And guess what? The bad guys know that too,” he said.
Right now, very few pot shops can open bank accounts. No such law exists that prohibits them from having bank accounts, but instead, banks often do not want them as a customer, said Beardall.
“Banks will see them as a high-risk customer for money laundering,” said Beardall.
KING 5 will continue to closely monitor the SAFE Banking Act.