American Banks block Uruguay's Cannabis Policy

[Aboim]

Pot Was Flying Off the Shelves in Uruguay. Then U.S. Banks Weighed In.[/align]

The pharmacies selling pot were doing a brisk business.

After Uruguay became the first country in the world to fully legalize marijuana sales for recreational use last month, some of the pharmacies struggled to keep up with the demand. Then came the stern letters from American banks. The letters immediately sent officials in Uruguay scrambling to make sense of the Patriot Act and other American laws that could doom an essential part of their country’s new marijuana market.

American banks, including Bank of America, said that they would stop doing business with banks in Uruguay that provide services for those state-controlled sales. Afraid of losing access to the American banking system, Uruguayan banks warned some of the pharmacies over the last couple of weeks that their accounts would be shut down, potentially signaling a broader international impasse as other countries, including Canada, set out to legalize marijuana.

“We can’t hold out false hope,” President Tabaré Vázquez of Uruguay told reporters this week, adding that his administration was trying to come up with a solution.

The snag mirrors challenges that such businesses have faced in American states that have legalized medical and recreational cannabis. Under the Patriot Act, which was passed weeks after the attacks of Sept. 11, 2001, it is unlawful for American financial institutions to do business with dealers of certain controlled substances, including marijuana. The provisions were designed to curb money laundering and drug trafficking.

https://www.nytimes.com/2017/08/25/worl ... banks.html

https://elpais.com/internacional/2017/0 ... 53316.html

https://www.washingtonpost.com/world/th ... 6b4fef1d62

It's a great opportunity to European and Dutch banks start gaining ground in South America and difficult inheritance for Vázquez.

[Thermodolia]

So i guess the Dutch don't exist then?

[Dushan]

Pot Was Flying Off the Shelves in Uruguay. Then U.S. Banks Weighed In.[/align]

The pharmacies selling pot were doing a brisk business.

After Uruguay became the first country in the world to fully legalize marijuana sales for recreational use last month, some of the pharmacies struggled to keep up with the demand. Then came the stern letters from American banks. The letters immediately sent officials in Uruguay scrambling to make sense of the Patriot Act and other American laws that could doom an essential part of their country’s new marijuana market.

American banks, including Bank of America, said that they would stop doing business with banks in Uruguay that provide services for those state-controlled sales. Afraid of losing access to the American banking system, Uruguayan banks warned some of the pharmacies over the last couple of weeks that their accounts would be shut down, potentially signaling a broader international impasse as other countries, including Canada, set out to legalize marijuana.

“We can’t hold out false hope,” President Tabaré Vázquez of Uruguay told reporters this week, adding that his administration was trying to come up with a solution.

The snag mirrors challenges that such businesses have faced in American states that have legalized medical and recreational cannabis. Under the Patriot Act, which was passed weeks after the attacks of Sept. 11, 2001, it is unlawful for American financial institutions to do business with dealers of certain controlled substances, including marijuana. The provisions were designed to curb money laundering and drug trafficking.

https://www.nytimes.com/2017/08/25/worl ... banks.html

https://elpais.com/internacional/2017/0 ... 53316.html

https://www.washingtonpost.com/world/th ... 6b4fef1d62

It's a great opportunity to European and Dutch banks start gaining ground in South America and difficult inheritance for Vázquez.

Sounds like an excellent business opportunity for a Bank specialized on the needs of those customers.

[Greed and Death]

Pot Was Flying Off the Shelves in Uruguay. Then U.S. Banks Weighed In.[/align]

The pharmacies selling pot were doing a brisk business.

After Uruguay became the first country in the world to fully legalize marijuana sales for recreational use last month, some of the pharmacies struggled to keep up with the demand. Then came the stern letters from American banks. The letters immediately sent officials in Uruguay scrambling to make sense of the Patriot Act and other American laws that could doom an essential part of their country’s new marijuana market.

American banks, including Bank of America, said that they would stop doing business with banks in Uruguay that provide services for those state-controlled sales. Afraid of losing access to the American banking system, Uruguayan banks warned some of the pharmacies over the last couple of weeks that their accounts would be shut down, potentially signaling a broader international impasse as other countries, including Canada, set out to legalize marijuana.

“We can’t hold out false hope,” President Tabaré Vázquez of Uruguay told reporters this week, adding that his administration was trying to come up with a solution.

The snag mirrors challenges that such businesses have faced in American states that have legalized medical and recreational cannabis. Under the Patriot Act, which was passed weeks after the attacks of Sept. 11, 2001, it is unlawful for American financial institutions to do business with dealers of certain controlled substances, including marijuana. The provisions were designed to curb money laundering and drug trafficking.

https://www.nytimes.com/2017/08/25/worl ... banks.html

https://elpais.com/internacional/2017/0 ... 53316.html

https://www.washingtonpost.com/world/th ... 6b4fef1d62

It's a great opportunity to European and Dutch banks start gaining ground in South America and difficult inheritance for Vázquez.

Sounds like an excellent business opportunity for a Bank specialized on the needs of those customers.

The fundamental problem is almost all international wires go through New York.

So if the American banks shut you out you are shut out from global banking.

[Shofercia]

So i guess the Dutch don't exist then?

Yeah, I have the exact same question. What about Netherlands' Banks?

[Geilinor]

The banks don't have much of a choice, they're probably worried about the Justice Department under Jeff Sessions going after them.

[Kanaria]

We just need to get enough banks in enough countries to do business with marijuana until someone realizes that leaving New York out of the ganja money is bad for business and doesn't protect you from schizophrenia or darkie invasion.

[Greed and Death]

The banks don't have much of a choice, they're probably worried about the Justice Department under Jeff Sessions going after them.

The big national banks in Uruguay will not touch this business because they need access to American banking to function. The local banks that could care less about ties with the international banking community will be happy to take these clients.

[Aboim]

Dutch coffeeshops sell cannabis food and other derived things, or not? And I don’t remember any problem with their money.

[Geilinor]

Dutch coffeeshops sell cannabis food and other derived things, or not? And I don’t remember any problem with their money.

So do American marijuana shops in states where it's legal but they have trouble getting financing.

[Thermodolia]

So i guess the Dutch don't exist then?

Yeah, I have the exact same question. What about Netherlands' Banks?

And I'm pretty sure that the Dutch where the first to legalize recreational marijuana.

[Rio Cana]

They say the government of Uruguay is trying to solve this via international contacts with the US. In the meantime, a bunch of people and organizations including ex-government officials have gone to the Uruguayan Human Rights commission. They are asking the human rights commission to defend the rights and liberties of the Uruguayan people against these banks which have closed the accounts of businesses for legally selling Cannabis.

This started over one week ago when the Uruguayan bank (Banco República) closed some bank accounts of businesses that were selling Cannabis. This happened after Bank of America contacted Banco República and told them that if they continued doing business with businesses that were selling Cannabis that they would no longer sell them US Dollars. Seems Citibank also contacted them but said if the bank did not change its policy on this that they would take measures.

Found out that in April 27, 2017, there was a measure introduced into the US congress that would have become law if passed, that would have addressed this problem. Seems nothing has been done. Supposedly, there are 250 US banks that have accounts with businesses involved one way or another in selling Cannabis in Uruguay.

Got above information from the Uruguayan newspaper "El Pais" - http://www.elpais.com.uy/informacion/ba ... uguay.html

Off -topic - And now for some Uruguayan entertainment - Song title " Jamás" (translation = Never)
https://www.youtube.com/watch?v=EX_CgaYqays

[Ethel mermania]

Sounds like an excellent business opportunity for a Bank specialized on the needs of those customers.

The fundamental problem is almost all international wires go through New York.

So if the American banks shut you out you are shut out from global banking.

Pretty much what Putin and xi are bitching about. The clearing systems go through thr US. I don't see this ending well for anybody. Congress needs to write an exception to the rule for legality. ( an executive order could do it, but I hate rule by executive order).

[LimaUniformNovemberAlpha]

The fundamental problem is almost all international wires go through New York.

So if the American banks shut you out you are shut out from global banking.

Pretty much what Putin and xi are bitching about. The clearing systems go through thr US. I don't see this ending well for anybody. Congress needs to write an exception to the rule for legality. ( an executive order could do it, but I hate rule by executive order).

Or they could put pressure on the US government to admit they were wrong about weed, and promote it as an alternative to harder drugs.

Including tobacco and alcohol.

[Ethel mermania]

Pretty much what Putin and xi are bitching about. The clearing systems go through thr US. I don't see this ending well for anybody. Congress needs to write an exception to the rule for legality. ( an executive order could do it, but I hate rule by executive order).

Or they could put pressure on the US government to admit they were wrong about weed, and promote it as an alternative to harder drugs.

Including tobacco and alcohol.

Which has nothing to do with the topic and would effectively be the result of what I am saying.

As an fyi Domestic banking in states where weed is legal is affected by this as well.

http://kdvr.com/2017/05/26/colorados-u- ... -industry/

[The Serbian Empire]

So i guess the Dutch don't exist then?

Yeah, I have the exact same question. What about Netherlands' Banks?

It's called the EU/NATO combo. Trump/Sessions can dangle "We won't protect the Dutch unless they stop the weed".

[Fauxia]

Corporations should have the right to do this, I think, but it's still scummy.

[Greed and Death]

Pretty much what Putin and xi are bitching about. The clearing systems go through thr US. I don't see this ending well for anybody. Congress needs to write an exception to the rule for legality. ( an executive order could do it, but I hate rule by executive order).

Or they could put pressure on the US government to admit they were wrong about weed, and promote it as an alternative to harder drugs.

Including tobacco and alcohol.

I do not see Uruguay putting much Pressure on the US. China and Russia really do not care that much about pot to put pressure on it.

[Bakery Hill]

Typical gringo imperialism tbh

[Greed and Death]

Or they could put pressure on the US government to admit they were wrong about weed, and promote it as an alternative to harder drugs.

Including tobacco and alcohol.

Which has nothing to do with the topic and would effectively be the result of what I am saying.

As an fyi Domestic banking in states where weed is legal is affected by this as well.

http://kdvr.com/2017/05/26/colorados-u- ... -industry/

Obama used his discretion to not enforce Anti money laundering rules but once Trump selected Sessions as Attorney General I knew that was gone and I suspect any bank that relied on Obama's discretion continuing is about to get burnt.

[Ethel mermania]

Which has nothing to do with the topic and would effectively be the result of what I am saying.

As an fyi Domestic banking in states where weed is legal is affected by this as well.

http://kdvr.com/2017/05/26/colorados-u- ... -industry/

Obama used his discretion to not enforce Anti money laundering rules but once Trump selected Sessions as Attorney General I knew that was gone and I suspect any bank that relied on Obama's discretion continuing is about to get burnt.

absolutely. one of my biggest bitches about obama is his rule by decree (executive order). and once sessions was appointed AG, I agree with you, clearing marijuana transactions is dangerous territory. Yes i know other Presidents used executive orders, but not on as sweeping issues as obama did.

Obviously i think marijuana should be legal, but unfortunately it is a federal issue not a state one. either we need a "we really mean it" clause in the 10th amendment, or this should have been dealt with at the federal level.

to the topic at hand, the banks dont have a choice in the matter, they have to do what the AG says.

[Saiwania]

I'm in favor of this, I've seen what pot can do to people- that it makes them stupider than they were before and does that permanently with prolonged use. For that reason alone, I'm in favor of keeping it illegal. But I also recognize that its a huge waste of money to keep too many people in prison over just that, so I favor decriminalization at most.

[Greed and Death]

Obama used his discretion to not enforce Anti money laundering rules but once Trump selected Sessions as Attorney General I knew that was gone and I suspect any bank that relied on Obama's discretion continuing is about to get burnt.

absolutely. one of my biggest bitches about obama is his rule by decree (executive order). and once sessions was appointed AG, I agree with you, clearing marijuana transactions is dangerous territory. Yes i know other Presidents used executive orders, but not on as sweeping issues as obama did.

Obviously i think marijuana should be legal, but unfortunately it is a federal issue not a state one. either we need a "we really mean it" clause in the 10th amendment, or this should have been dealt with at the federal level.

to the topic at hand, the banks dont have a choice in the matter, they have to do what the AG says.

Enforcement discretion is not really rule by decree. It is the executive check on the legislature's power and necessary for our Democracy to function. We know that roughly 1/3 of society has used pot, turning 1/3 of society into non voting Felons would almost certainly spell the end of Democracy.

[Great Minarchistan]

I'm in favor of this, I've seen what pot can do to people- that it makes them stupider than they were before and does that permanently with prolonged use. For that reason alone, I'm in favor of keeping it illegal. But I also recognize that its a huge waste of money to keep too many people in prison over just that, so I favor decriminalization at most.

What about alcohol and tobacco, which are more harmful than weed? Moreover, with the tax applied to marijuana sales (extra VAT or just ordinary VAT), government could fund rehab centers.

[Neo-Cristo]

Fine with me. I detest narcotics and now find that our banking system can actually be used to do some good in the world for once.