Elevations Credit Union Takes a Stand on Pot



Elevations Credit Union, one of the largest credit unions in the country has bravely turned down business with a medical marijuana dispensary. This credit union has taken such a proud stance against medical marijuana that it has requested that all of its business accounts provide a detailed account of the products and services provided to ensure that none of the businesses they are associated with participate with the distribution of marijuana. While medical marijuana is not illegal, it appears to be a highly controversial topic with the businesses, especially financial businesses, in the Denver area.



It should be noted that Elevations Credit Union has stated that the decision to not conduct business with the various medical marijuana dispensary or growth companies was not a moral decision. That would be discrimination and illegal. Instead the decision was based on the same premise that gambling and money service providers. The risk is simply too high to risk the credit union's money. The chances of the business engaging in illegal behaviors are too high and all profits through illegal activities would be frozen and the business may not repay debts. In addition, the chances of anti-marijuana legislation are high and that can cause a decrease in assets as well as the businesses ability to repay debts. This makes the risk exceptionally high for these types of businesses. The bank is able to use the 1970 act of The Bank Secrecy. This allows and enforces the importance of a bank policing its customers.

The Bank Secrecy Act of 1970 was designed to help the United States government identify and stop money laundering, or the act of making illegally earned money appear legal. The DORA, also known as the Department of Regulatory Agencies, is responsible for ensuring that the banks conduct themselves in such a way as to prevent money laundering and are properly reporting all potential chances of laundering. The Department of Regulatory Agencies has been putting pressure on many Denver financial departments to police the marijuana accounts better and Elevations Credit Union has decided that the extra policing would be too much of an expense.