Elevations CU Asks Members About Medical Marijuana Transactions
The $940 million Elevations Credit Union said it is choosing not to do business with medical marijuana dispensaries and has asked its business members to attest to not selling, producing or storing the drug.
According to a Feb. 12 Boulder Weekly article, the Boulder, Colo.-based Elevations sent a letter to its business account members in January asking them to identify the nature of their business accounts as a requirement of the CU's member due diligence program. The letter said the growing number of medical marijuana dispensaries and related business prompted Elevations to ask if any of its business members were providing the sale, production or storage or marijuana. If members did not respond within 30 days, their accounts would be closed.
The publication reported that Elevations Compliance Manager Cenobio Chacon compared the medical marijuana industry to online gambling and money service providers. The CU does not do business with either industry, according to the article. Chacon said as a requirement of the Bank Secrecy Act of 1970, financial institutions are required to report any illegal activity such as money laundering.
Elevations spokesman Ed Beckmann said the CU heard in December that banks were asking if they should do business with medical marijuana dispensaries and most were choosing not to.
A comment from Elevations was not immediately available.