Banking regulations mean Oregon flush with marijuana cash - KPTV - FOX 12

Banking regulations mean Oregon flush with marijuana cash

Posted: Updated:
KPTV file photo KPTV file photo

As legalized marijuana brings more business to Oregon, some communities are seeing a large amount of cash in the economy thanks to strict regulations keeping banks away from the businesses.

The Mail Tribune reports that banking officials say that after years of moving away from cash, financial institutions have seen a recent influx due to the marijuana industry.

Many banks will not offer lines of credit to marijuana businesses due to high federal penalties for holding pot-tainted money. As a result, the marijuana industry operates with cash. Dispensaries pay their employees, landlords and lawyers with cash that is then spent in grocery stores and other daily tasks.

People's Bank Vice President and Operations Manager Dawn DeVita says the Southern Oregon-based institution does not work directly with marijuana businesses, but it has seen an increased volume of cash circulation.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by Frankly
FOX 12
Powered by WorldNow CNN
All content © 2018, KPTV-KPDX Broadcasting Corporation, Portland, OR . All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.