title: Underbanked: Cooperative Banking as a Potential Solution to the Marijuana-Banking Problem.
abstract: Numerous states have recently legalized recreational marijuana, which has created a burgeoning marijuana industry needing and demanding access to a variety of banking and financial services. Due, however, to the interplay between the federal criminalization of marijuana and federal anti-money laundering laws, U.S. financial institutions cannot handle legally the proceeds from marijuana activity. As a result, most financial institutions are unwilling to flout federal anti-money laundering laws, and so too few marijuana-related businesses can access banking services. This Note argues that the most viable policy option for resolving this "underbanking" problem is a financial cooperative approach such as a cannabis-only financial cooperative. Even in light of federal anti-money laundering laws, this Note contends that the Federal Reserve is legally authorized to grant some cannabis-only financial cooperatives access to its payment system services under the Monetary Control Act of 1980.
authors.forename: Patrick A
authors.initials: PA
authors.lastname: Tighe
mesh_terms: D000067012:Banking, Personal / Q000191:economics* / Q000331:legislation & jurisprudence*; D002188:Cannabis / Q000145:classification; D003132:Commerce / Q000191:economics* / Q000331:legislation & jurisprudence*; D061891:Controlled Substances / Q000191:economics*; D035082:Federal Government; D033161:Government Regulation; D006801:Humans; D007221:Industry / Q000191:economics* / Q000331:legislation & jurisprudence*; D008385:Marijuana Smoking / Q000191:economics* / Q000331:legislation & jurisprudence*; D064086:Medical Marijuana / Q000191:economics*; D013219:State Government; D014481:United States; D014486:United States Food and Drug Administration
chemical_list: D061891:Controlled Substances; D064086:Medical Marijuana