Bernie Sanders criticizes banking regulator over pot policy

Sen. Bernie Sanders (I-Vt.) and several of his colleagues are taking federal regulators to task over a controversial marijuana policy that prevents companies linked to the fledging industry from opening bank accounts.

The policy “creates a huge target for criminals,” the bipartisan group of senators in a letter to the Financial Crimes Enforcement Network.

The letter was also signed by Sens. Elizabeth Warren (D-Mass.), Jeff Merkley (D-Ore.), Lisa Murkowski (R-Ak), and several other senators.

The lawmakers urged the regulators to loosen the banking policy.

“The majority of legal marijuana businesses, and businesses that provide services to them, are all but barred from participating in the financial system,” they wrote. “As a result, many legal businesses are forced to operate in cash, which jeopardizes community safety.”

The federal government is butting heads with dozens of states that have passed laws authorizing some form of marijuana use, even though the drug remains illegal on the national level.

This conflict has resulted in a grey area in the marijuana industry.

Many banks will not open accounts for marijuana companies, because they are concerned about retaliation from the federal government. 

Even companies that do not sell pot are finding themselves locked out of the banking system. This could include lawyers, security professionals, landlords, electricians, plumbers, and chemists, the lawmakers said.

They urged the enforcement network to issue new guidelines allowing banks to work with these “indirect” marijuana companies.

“A large number of professionals have been unable to access the financial system, because they are doing business with marijuana growers and dispensaries,” the senators wrote.

“This business environment is an invitation to tax fraud, robberies, money laundering, and organized crime,” they added.