According to a Drug Policy Alliance press release, just eight short months after the Federal Justice Department and Treasury Department announced new guidelines permitting banks to work with marijuana businesses, credit unions in New Mexico sent letters to nearly half of the state’s licensed medical marijuana producers stating that they will no longer accept their business and will proceed with closing their bank accounts.
The credit unions attest that they are unable to adhere to federal guidelines for servicing the medical marijuana business accounts. This move forces producers to operate on a cash-only payment system or leaves producers struggling to find another financial institution that is willing to accept their business.
“It is disappointing to see that the banking industry in New Mexico is failing to protect medical patients and small businesses in light of the assurances the federal administration has provided and a robust and thriving medical marijuana industry in the state,” said Emily Kaltenbach, state director of the Drug Policy Alliance. “This abrupt move has all of us asking why they are unexpectedly ceasing to do business with the marijuana industry in New Mexico. We would like to know why they are unable to comply with the federal guidelines.”
Ultimately, these legitimate medical marijuana businesses are being denied the same financial services afforded to other industries in every state, despite generating large amounts of tax revenue, particularly in Colorado and Washington. In the meantime, beginning today, all medical marijuana business transactions in New Mexico will be cash-only.