CANNABIS BANKING WOES

With cannabis still considered a Schedule I substance under federal law, many cannabis businesses are forced to do all their business in cash. This is because banks or credit unions that accept money from cannabis businesses could be prosecuted for Anti-Money Laundering (AML) and Know Your Customer (KYC).

Cannabis collectives face a dangerous disadvantage due to this legislation, because they are forced to do business with large sums of cash on hand. These cash sums make cannabis collectives a target for robberies, which is what happened in Walnut Park, in early June.

Around 10:40pm on June 7, the manager of a medical cannabis collective was forced to open fire at two armed suspects who were attempting to rob the establishment. According to www.weedhorn.com, the collective is named The HP Med Collective located on the 2400 block of Florence Avenue in Walnut Park.

According to ABC7, the manager said the two suspects were wearing body armor and had their faces covered when they barged into the collective. With two assault rifles pointed directly at the manger, he felt he had no other option than to fire his handgun in self-defense.

A nearby neighbor named Jasmine Chavez also spoke with Eyewitness News, stating that when she emerged from her house following the shooting, she saw the suspects on stretchers and being sent on their way in an ambulance. When Chavez spoke with the manager, he mentioned that he was really lucky to be alive and that he was happy his employees were safe as well.

Eyewitness News also spoke with another nearby neighbor named Hector Martinez. Working at a cannabis collective in the past, Martinez is familiar with the necessary precautions collectives must take with so much cash on-hand, “A lot of money is kept inside, and that’s why they always hire guards and actually have to escort people with that amount of money so they won’t get robbed.”

As reported by the Los Angeles Times, the two suspects were in critical condition following the altercation, and if they are released from the hospital, they will be taken into police custody.

Activists continue to push for the rescheduling of cannabis for many reasons, one of which is to allow recreational and medical cannabis collectives to have bank accounts. Eliminating the amount of cash collectives are forced to have on-hand will deter violent criminals from seeing them as targets. Until then, there are a few options that collectives can take to protect their assets.

Cannabis payment kiosks are just one solution to this cash problem. These cash management tools allow employees to deposit and store cash within a safe of the kiosk, and the safe is inaccessible to employees. Armored security professionals are the only ones who are able to safely access and transport the cash. Other solutions involve heightened security measures, using payment by bitcoin and more.

The best solution for these businesses will be the federal rescheduling of cannabis, but until then they will need to take necessary precautions to ensure their safety and security.