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The SAFE Banking Act, now before Congress, would open the floodgates to the federal legalization of marijuana and harm public safety. In a last-minute push to provide financial legitimacy to the marijuana industry, its allies in Congress are working to alter the act behind closed doors and expedite its passage.
There have been no hearings on this altered piece of legislation. Legislation with national implications must be reviewed before the American public. There needs to be time for it to be analyzed closely by legislators and outside experts. As the ranking member of the Senate Banking Committee, our state’s Sen. Pat Toomey could stop the bill and its dangerous attempt to liberalize our nation’s marijuana laws.
The marijuana industry claims pot shops are targets for robberies because of a supposed “cash-only” problem. But it’s the store’s marijuana –– which is far more lucrative –– that is often the target, not its cash. The stolen marijuana can be easily resold in the illicit market and would be of greater value than the limited cash in the registers. Even if the SAFE Banking Act is passed, studies show marijuana shops will continue to attract crime.
If the cash-only aspect of dispensaries was the driver of crime, we would expect individuals purportedly concerned about public safety to make similar efforts in other cash-heavy industries. Yet there have been no similar campaigns for laundromats, food trucks, nail salons, or lawn service providers to shift from cash to electronic payments.
It’s also a myth that marijuana dispensaries all operate as cash-only businesses. Last week, the Financial Crimes Enforcement Network (FinCEN) released data showing that, as of September of this year, 784 banks and credit unions provide financial services to marijuana businesses.
Moreover, many are concerned that the SAFE Banking Act would allow cartels and transnational criminal organizations to launder funds through the financial accounts of marijuana shops. A letter from a bipartisan group of former directors of the White House Office of National Drug Control Policy and the Drug Enforcement Administration warns about this.
“In short, the SAFE Banking Act could inadvertently allow cartels to bring into banks duffel bags of cash made from the sale of those illicit drugs that are killing tens of thousands of Americans every year.” They concluded: “We urge the Senate Banking Committee to reject the SAFE Banking Act and other legislation that would give these cartels more cover and more access to the U.S. financial system.”
The SAFE Banking Act would open the marijuana industry to investments from Big Business, effectively consolidating the industry. It will also concentrate health-related harms among vulnerable populations that the industry expects may provide the greatest profits. We know who wins when Big Tobacco, Big Alcohol, and the banks get together to cash in on the drug business, and it isn’t the public––and certainly not people of color.
It is worth remembering that marijuana remains a federally illegal Schedule 1 substance, meaning the SAFE Banking Act would allow financial institutions to profit from the sale of an illegal drug. The government should not compromise the US banking system by giving its approval for illegal activity. As long as marijuana remains a federally illegal drug, federally insured banks should continue to treat it as such.
Marijuana’s Schedule 1 status indicates that the drug has a high potential for abuse and no accepted medical use. An industry that profits off the addiction of its customers should not be afforded the financial resources needed to expand and further harm Pennsylvanians. Instead, Wall Street should distance itself from the marijuana industry, as it did with the tobacco industry.
Despite the assurances of pro-legalization, profit-driven interest groups, the SAFE Banking Act fails to address the fact that marijuana shops increase crime rates and would give financial cover to cartels. Under the guise of improving public safety, this legislation is the latest attempt to legitimize an industry that produces and sells a federally illegal product. Members of Congress should take a stand for public health and public safety and oppose the SAFE Banking Act.
Under the guise of improving public safety, this legislation is the latest attempt to legitimize an industry that produces and sells a federally illegal product at the cost of our families and communities — particularly young people.
Dan Bartowiak is the Pennsylvania Family Institute’s director of communications.
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