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The booming money laundering business due to legalized marijuana

blackangst1

Lifer
Feb 23, 2005
20,212
633
126
I saw a hint of this on a show, and thought...I hadnt thought of that! Although pot may be legal in many states, the money coming from a federally declared illegal substance gives shop owners no choice but to launder their money. Interesting indeed. The only solution I can see if federally legalizaing it.

 

Blackjack200

Lifer
May 28, 2007
15,991
1,656
126
BTW, it isn't just marijuana, the US banking system give the federal government veto power over practically anything. I'm not a fan of cryptocurrency, but I'm very sympathetic to the effort to create some kind of an end-around. You think when the SCOTUS overturns Row, it will actually be up to the states to decide? Just wait until abortion providers aren't allowed to use fucking banks.

The government and the nationally chartered banks are methodically removing any ability for people to conduct private business anymore. This is done ostensibly to prevent funding of terrorism and human trafficking, but it's really just to control people.
 

Vic

Elite Member
Jun 12, 2001
47,660
7,734
126
That article is more than a year old. The SAFE Banking Act passed the House 321-103 months ago, and the only reason that cannabis isn't already legal at the federal level is because Senator Mike Crapo R-ID has locked it up in the Senate Banking Committee, which he chairs.
 

dank69

Lifer
Oct 6, 2009
26,067
6,050
136
You can always tell who is anti-pot because they rush to make threads like this.
 

K1052

Lifer
Aug 21, 2003
35,195
8,516
136
That article is more than a year old. The SAFE Banking Act passed the House 321-103 months ago, and the only reason that cannabis isn't already legal at the federal level is because Senator Mike Crapo R-ID has locked it up in the Senate Banking Committee, which he chairs.
Carpo said allowing these businesses access to the banks would let the cartels launder money. Which has to be about the dumbest fucking thing I've ever heard.

Many senate Rs claim to support the SAFE act but haven't really lifted a finger to advance it. Only a Dem congress will pass it so lets hope for 2020.
 

1prophet

Diamond Member
Aug 17, 2005
5,210
456
126
BTW, it isn't just marijuana, the US banking system give the federal government veto power over practically anything. I'm not a fan of cryptocurrency, but I'm very sympathetic to the effort to create some kind of an end-around. You think when the SCOTUS overturns Row, it will actually be up to the states to decide? Just wait until abortion providers aren't allowed to use fucking banks.

The government and the nationally chartered banks are methodically removing any ability for people to conduct private business anymore. This is done ostensibly to prevent funding of terrorism and human trafficking, but it's really just to control people.

Good, many so called liberals who should have been at the forefront of protecting rights including those of payday lenders and firearms dealers where all too happy to stay silent when the Obama administration used these same tactics, it seems people only will wake up and take action when their own sacred cows start to be slaughtered not that other guys cow they find deplorable or beneath them or have an agenda against them.


Operation Choke Point was a 2013 initiative of the United States Department of Justice[1] which investigated banks in the United States and the business they did with firearm dealers, payday lenders, and other companies believed to be at a high risk for fraud and money laundering.
This operation, disclosed in an August 2013 Wall Street Journal story,[2] was officially ended in August 2017,[3] and the FDIC settled multiple lawsuits by promising to Congress additional training for its examiners and to cease issuing "informal" and "unwritten suggestions" to banks.




just like it should be illegal to confiscate property and money without a conviction in a court of law it should be illegal for the government to use banks as an end run against businesses the current political administration doesn't like without actually following legal due process where one is presumed innocent until found guilty in a court of law.

If you don't like a certain type of business then make it illegal, but don't play these type of behind the scenes mafioso tactics of veiled threats done in secret.
 

thilanliyan

Lifer
Jun 21, 2005
11,121
977
126
Good, many so called liberals who should have been at the forefront of protecting rights including those of payday lenders and firearms dealers where all too happy to stay silent when the Obama administration used these same tactics, it seems people only will wake up and take action when their own sacred cows start to be slaughtered not that other guys cow they find deplorable or beneath thetain type of business then make it illegal, but don't play these type of behind the scenes mafioso tactics of veiled threats done in secret.
Why do all of your posts blame liberals for something?
 

Stokely

Senior member
Jun 5, 2017
796
611
106
it's a no brainer really. legalize it, keep people out of jail, and take a cut in the form of federal taxation. it's basically an all around winner.
Is nobody thinking of private prison operators?!

What about the poor guys running the cartels?

Let's not pretend legalization is a victimless crime!
 
Nov 8, 2012
17,670
3,431
126
it's a no brainer really. legalize it, keep people out of jail, and take a cut in the form of federal taxation. it's basically an all around winner.
I agree - just ensure that it isn't taxed too much... or else the black-market will take back over because it's cheaper. This has been seen in states like California.

If you regulate it too much with licenses fees, inspections fees, taxes at the growing level, taxes on the selling level, filing additional regulatory paperwork, etc. then it just results in people ignoring it and continuing to circumvent by transacting under the table.

See: https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html



vs. Colorado's legalization I haven't heard the same complaints.
 

Vic

Elite Member
Jun 12, 2001
47,660
7,734
126
Carpo said allowing these businesses access to the banks would let the cartels launder money. Which has to be about the dumbest fucking thing I've ever heard.

Many senate Rs claim to support the SAFE act but haven't really lifted a finger to advance it. Only a Dem congress will pass it so lets hope for 2020.
Well yeah, it's the lack of bank access that leads to money laundering and helps the cartels. If SAFE passed, then marijuana businesses could operate completely out in the open.

Really funny thing here is that, due to the overwhelming public support for legalization, the GOP could use this to re-take the House and hand Trump a landslide re-election victory. But they won't, because they're afraid of losing the evangelical and law enforcement votes.
 

Moonbeam

Elite Member
Nov 24, 1999
66,510
3,264
126
Is nobody thinking of private prison operators?!

What about the poor guys running the cartels?

Let's not pretend legalization is a victimless crime!
Wouldn't you be the one who is pretending that by giving a meaningless warning?
 

Vic

Elite Member
Jun 12, 2001
47,660
7,734
126
I agree - just ensure that it isn't taxed too much... or else the black-market will take back over because it's cheaper. This has been seen in states like California.

If you regulate it too much with licenses fees, inspections fees, taxes at the growing level, taxes on the selling level, filing additional regulatory paperwork, etc. then it just results in people ignoring it and continuing to circumvent by transacting under the table.

See: https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html



vs. Colorado's legalization I haven't heard the same complaints.
IMO Oregon's legalization model has been the most successful. In fact, the biggest criticism is usually that it has been too successful, as there has been some over-production. But pot is cheap, black market operators have been priced out of existence, and the legal industry is thriving while still well-regulated.
 
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Nov 8, 2012
17,670
3,431
126
Carpo said allowing these businesses access to the banks would let the cartels launder money. Which has to be about the dumbest fucking thing I've ever heard.

Many senate Rs claim to support the SAFE act but haven't really lifted a finger to advance it. Only a Dem congress will pass it so lets hope for 2020.

There was a guy on Joe Rogan that came from a background of knowing all about the cartels and everything - basically saying that they money launder everywhere already... Saying they have all kinds of shell companies and are actively investing in the market with it, diversifying with other assets like gold, etc... Which I would definitely believe.
 
Nov 8, 2012
17,670
3,431
126
IMO Oregon's legalization model has been the most successful. In fact, the biggest criticism is usually that it has been too successful, as there has been some over-production. But pot is cheap, black market operators have been priced out of existence, and the legal industry is thriving while still well-regulated.
Yup, plus a pot dispensary isn't going to be lacing their weed by sprinkling in some crack, mixing it with other chemicals, etc or anything ;)
 

Vic

Elite Member
Jun 12, 2001
47,660
7,734
126
Why do all of your posts blame liberals for something?
You see, it's all the liberals' fault that conservative drug warriors for the last 50 years have been locking people up and stripping away their basic rights (including their gun rights) for possessing a freaking plant. Think of the payday lenders!
 

K1052

Lifer
Aug 21, 2003
35,195
8,516
136
There was a guy on Joe Rogan that came from a background of knowing all about the cartels and everything - basically saying that they money launder everywhere already... Saying they have all kinds of shell companies and are actively investing in the market with it, diversifying with other assets like gold, etc... Which I would definitely believe.
I mean yea cartels have been laundering money since forever. The legal weed industry is the opposite of that and standing in its way helps the cartels.
 

K1052

Lifer
Aug 21, 2003
35,195
8,516
136
Really funny thing here is that, due to the overwhelming public support for legalization, the GOP could use this to re-take the House and hand Trump a landslide re-election victory. But they won't, because they're afraid of losing the evangelical and law enforcement votes.
The evangelicals would never agree to this because Jesus and the cops would rather put everybody in the clink for 2 years if they were found to have a joint on them because it's job security.
 
Nov 8, 2012
17,670
3,431
126
The evangelicals would never agree to this because Jesus and the cops would rather put everybody in the clink for 2 years if they were found to have a joint on them because it's job security.
Isn't it the boomers that were like "Hands off my medical marijuana!" ?
 

zinfamous

No Lifer
Jul 12, 2006
103,539
18,099
136
I agree - just ensure that it isn't taxed too much... or else the black-market will take back over because it's cheaper. This has been seen in states like California.

If you regulate it too much with licenses fees, inspections fees, taxes at the growing level, taxes on the selling level, filing additional regulatory paperwork, etc. then it just results in people ignoring it and continuing to circumvent by transacting under the table.

See: https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html



vs. Colorado's legalization I haven't heard the same complaints.
there is also a supply effect on price right now. legal weed is currently way way cheaper because of the massive abundance, and ease with which it can be obtained. ....I'm now seeing a qtr ounce of very, very decent stuff priced at what I used to pay for an eighth of similar/same. I think there's plenty of room to tax the jeebus out of legal weed to a point that illegal growers still wouldn't compete on price
 

woolfe9998

Lifer
Apr 8, 2013
11,842
6,297
136
I agree - just ensure that it isn't taxed too much... or else the black-market will take back over because it's cheaper. This has been seen in states like California.

If you regulate it too much with licenses fees, inspections fees, taxes at the growing level, taxes on the selling level, filing additional regulatory paperwork, etc. then it just results in people ignoring it and continuing to circumvent by transacting under the table.

See: https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html



vs. Colorado's legalization I haven't heard the same complaints.
Read your article and parts of it are inconsistent with my experience here. After legalization, the state imposed 3 different taxes on MJ, while it had been just 1 (sales tax) on medical MJ prior to legalization. But the base price went down so much (~$55 per eighth oz prior v. ~$35 after) that the net price is now about ~$45, lower than it was before. Since the pricing in the illicit market was the same as in the shops prior to full legalization, illicit sellers would have to lower their prices considerably to be a more attractive option than buying in shops.

I suspect the reason illicit sales are sticking around for the time being is not better pricing but another thing mentioned in the article: too many cities are voting to not allow cannabis shops and there are people who don't want to drive 45 minutes each way to buy their weed.
 

hal2kilo

Lifer
Feb 24, 2009
15,281
3,497
136
I agree - just ensure that it isn't taxed too much... or else the black-market will take back over because it's cheaper. This has been seen in states like California.

If you regulate it too much with licenses fees, inspections fees, taxes at the growing level, taxes on the selling level, filing additional regulatory paperwork, etc. then it just results in people ignoring it and continuing to circumvent by transacting under the table.

See: https://www.latimes.com/politics/la-pol-ca-marijuana-year-anniversary-review-20181227-story.html



vs. Colorado's legalization I haven't heard the same complaints.
As a black market purchaser in a legal overbearing state, I completely agree.
 

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