Uruguay Alters Cannabis System to Comply with Banking

Like all states in the Unites States that have legalized cannabis, Uruguay is having trouble getting banks to work with companies that sell cannabis. In response to this obstacle, the government has decided to take a more proactive approach to the current rules, and it will do so by implementing changes to its current program.

According to The Washington Post, Uruguay’s government announced last week that it is will be altering its current cannabis program’s rules, because local banks are refusing to deal with the companies that sell cannabis. Uruguayan banks appear to be worried about compliance with international banking laws, which govern all financial operations.

As a result, Uruguay will be setting up stores so that they are cash-only. Juan Andres Roballo, the government official who announced the change, conveyed that the government seems to feel the best way to avoid banking issues is not to bank at all.

Originally, the plan for Uruguay was to sell cannabis like any other legal substance, through pharmacies. This past July, 16 pharmacies began selling cannabis, thanks to the 2013 legislation that made this country the first nation to legalize. Since July, at least three of the original 16 pharmacies have decided not to carry cannabis due to the associated banking issues.

In addition to the challenges cash-only businesses in the U.S. face, such as risk of robbery and inability to take cards, Uruguay businesses face additional hurdles. Current law bans paying employees by cash or check and insists on direct deposit. This will present a challenge for businesses planning to operate without a bank.

It appears that, despite the fact that Uruguay has legalized on a national level, international law is still making operations difficult for the emerging industry. This mirrors the problems the U.S. is currently facing as states are divided on the issue of legalization. Not until all nations have federally legalized will the cannabis industry be truly accepted and free to operate.