Well that did not take long. MBank has announced that they are pulling out of Colorado because, “They do not have the infrastructure to handle the overwhelming response for service.”
This is not surprising, but still disappointing. Not having a banking system is place is just an accident waiting to happen. Voters need to elect smarter policy makers so they could enact smarter policies. The federal government is not doing their job by not providing cannabis businesses with basic business services, such as access to a banks. Sure, the business are more than welcome to pay taxes, but use a bank, and make the business environment a safer place, not possible.
“Following national press, the volume of inquiries in Oregon, Washington and Colorado has been so overwhelming that we don’t currently have the infrastructure to adequately support all these customers,” MBank CEO Jef Baker said Monday. “Colorado is the farthest from our market area and the most difficult to provide the quality customer service to.”
The bank will continue to serve legal marijuana businesses in Oregon and Washington, Baker said.
“We’ve become accustomed to our banking solutions not actually working out,” said Michael Elliot, executive director of the Marijuana Industry Group. “After they got all that press, I was wondering if they’d get increased scrutiny and pressure as a result — just like all the other banks have.”
Part of the issue, Baker said, was MBank’s lack of a Colorado branch. If the company had a physical location, they would need the approval from state banking authorities. MBank, however, did not need approval to accept deposits from Colorado businesses.
Baker said the five Colorado-based marijuana business accounts that were opened will most likely be closed. “I’m not 100 percent on that, but we’re reviewing it.” Another 60 inquiries from Colorado pot shop owners will be shelved, he said.