Protecting Marijuana's $2.7 Billion Cash Industry When Banks Won't
Protecting Marijuana's $2.7 Billion Cash Industry When Banks Won't
Thanks to recreational legalization in Colorado and Washington, the U.S. marijuana industry exploded from $1.5 billion to $2.7 billion in one year. But now, businesses making hundreds of thousands or even millions of dollars a week are facing a serious problem: There’s nowhere to stash all the money.
Most banks are still afraid to take money from marijuana-related businesses because of the severe penalties attached to money laundering charges. So while Congress and the Obama administration took steps to legalize banking for marijuana-related businesses last year by ostensibly shielding them from money laundering prosecution if they were to do business with dispensaries operating within state laws, many financial institutions have not forgotten the lessons of 2011, when an administration that said it wouldn’t raid state-compliant medical marijuana dispensaries did just that.
That’s where companies like Blue Line Protection Group enter. Launched shortly after Colorado and Washington voted to legalize recreational marijuana, Blue Line provides what they call a “suite of services” to dispensary owners: help with navigating the maze of state, local, and federal regulations, protection and delivery of the weed, protection of the massive piles of cash, and delivery of said cash for payment to appropriate government agencies. That’s right, they deliver piles of (federally) illegal drug money directly to the IRS and watch as the agents count it.
“We go so far as to even return the receipts back to our customers,” says Ricky Bennett, vice president of operations at Blue Line.
Watch Reason TV’s profile of Blue Line Protection group above for a glimpse inside an industry that’s growing so quickly that the government and other entrenched interests can’t keep up.
Approximately 4 minutes. Produced by Zach Weissmueller. Music by Zero Page and BoxCat Games. Scroll down for downloadable versions of this video.
should of named it GREEN LINE
Until the Feds make it legal to be in that business, those who are, dangle their dice over the fire.
I wonder when the IRS will start hauling in the drag net that these state governments are helping them set?
The IRS is currently using civil asset forfeiture to take from legal businesses, how much worse is it going to be for "American Drug Cartels"?
Protectin money shyttt i need to spend ll tgat shyt and get it back into the economy shit?
Lots of these companies are playing it smart and buying precious metals as soon as they get a hold of the cash. These businesses need to barter instead of using gov. cash if it really is this risky.
End the drug war now.
There is no possible way to know how big the Marijuana industry was when it was illegal. It is, at best, a very rough estimate. I don’t believe it expanded much. Most likely, the only new users are chronic pain sufferers and other medical new users.
maybe put the money into homeless shelters or food banks for the poor. -_-
Unless it’s Mexican cartel blood money then it’s okay just ask that peice of shit Warren buffet
Use bitcoin and cryptocurencies like potcoin. End of problem
After July 1st Americans can use Canadian banks for marinuana business accounts and loans.
The irony. Illegal at a federal level but the federal IRS collects tax from them.
Thank goodness
The market was always there. There isn’t a huge increase in users just because its legal now in two states. Its just that the State has its fingers in the Black-Market Cookie Jar Money now. Follow the money! BTW A couple billion is chump change to the Politicians and Banksters. Hell, the day before 9/11. Rumsfeld gave a speech that the Pentagon had just lost 2.3 TRILLION dollars. Funny that problem just got swept under the war rug! Never to be mentioned again. Criminal Bastards!
I see this as a cash in while you can business. once legal on a federal level. they’re surely not going to let you control there money like that. you will be a one of company. nice thought but I don’t see them handing over all that money to a private person. banks are banks for reasons. not for are benifet.
On July 1st. 2018 All Canadian households will be allowed to grow 4 plants. Medical Marijuana patients will be allowed to grow more. I’m a patient.
great video reason tv..can’t wait till they legalize it in california…hopefully withthe mass tax revenue that come from the taxation of legal cannabis will get our state out of debt and restabilize our economy and also provide plenty of jobs for people that have been out of work or just can’t find any work in general..
The marijuana industry has a banking problem crypto can solve!
Banks have restricted guidelines with pot but Al Queda money fine Or Cartel money also fine, I guess terrorists organizations are fine as long they have nothing to do with pot.
Crazy
opening a check cashing business ?
FUCK YOU STEVEN HARPER YOU SACK OF SHIT OLD MAN YOU HAVE NO CLUE ABOUT WEED FUCKING QUIT ALREADY SO WE CAN GET SOMEONE IN WHO WILL LEGALIZE IT!
cocain dealers builded most of miami now they have problem with weed money???
They’re doing the same with gun shops, gold dealers, etc.
The federal government isn’t being straight-forward with the states, which are legalizing marijuana. Bank laws don’t allow to handle the money, yet the states are allowing marijuana business to start. Until the federal government actually allows marijuana businesses to bank, it’s still too risky to do business. The federal government should give marijuana enforcement to the states, because the federal government can save money, time, and receive taxes from the states.
just require bitcoin only method of payment, problem solved
Proof govt isnt needed.
money is fake anyway
buy bit coin then exchange it to other currencies.
😋
Their business model has the potential for a lot of short term profit but won’t survive full legalization. Prices will plummet, making armored transport of the pot an unnecessary extravagance and people will become more comfortable with electronic payment reducing the need for seriously secure cash transport.
Why not mention bitcoin? This vid looks like a commercial.
CO didn’t make the taxes they dreamed of off legal pot to give to the indoctrinating schools here instead of using it for meth rehab or something drug related. No rehab needed for pot as you don’t have withdrawals. Plus the alley dealers lowered their price to compete with the legal stores. It is taxed to death!
lol at showing a clip of Obama. Better be more concerned about who is going to take his place.