Maine Credit Union Cuts Ties with Medical Marijuana Caregivers Amid Regulatory Uncertainty
The cPort Credit Union in Maine has announced that it will be closing the accounts of all medical marijuana caregiver storefronts, citing the lack of clear regulations at the state level. This decision has left many small business owners, including Andrew Pettingill, who owns Evergreen Cannabis Company in Portland, scrambling to find alternative financial institutions.
Pettingill has been banking with cPort for over 11 years and is concerned about the impact this decision will have on his business and the hundreds of other small business owners who rely on the credit union. “Now they’re saying, OK, we’ll go back to no banks, just put your money in shoeboxes,” he said.
The decision by cPort is due to the uncertainty surrounding the regulation of medical marijuana at the state level. While adult-use cannabis businesses are required to file detailed reports, medical marijuana shops are not, which is causing difficulties for financial institutions trying to comply with federal regulations.
“We’re up against the feds, so we want to make sure we’re acting in compliance, and we are just grasping at straws in this gray area without the assistance that we need,” said Jen Burke, Vice President of the Maine Credit Union League.
Burke believes that the state needs to step in and provide more regulation and oversight to help banks, caregivers, and the people of Maine who rely on access to medical marijuana. “I think there certainly is hope that if we can get some changes implemented here and get some regulations in place, it would make things better and more feasible for financial institutions, credit unions, banks to serve these medical caregivers,” she said.
Without clear regulations, Burke worries that these businesses will be forced to operate on a cash-only basis, which can pose safety and soundness risks. “The safety and soundness of a cash-only business is something all Mainers should be worried about,” she said.
The Maine Office of Cannabis Policy has proposed legislation to bring medical marijuana regulations in line with the rules for adult-use cannabis, but those bills have failed in the state legislature. As a result, medical marijuana businesses in Maine will continue to operate in a regulatory gray area, leaving them vulnerable to the whims of financial institutions.
