THE ANTIQUE CANNABIS BOOK
Chapter 3 - (2nd Edition)
CENSORED MEDICAL STUDIES


CENSORSHIP
OUR BANKING SYSTEM
UNDER THE INFLUENCE

hemp-washington
GEORGE WASHINGTON - I Grew Hemp

PAGE 2
OUR BANKING SYSTEM; -- NOT ABOVE THE INFLUENCE
So, it turned out that the story (sent to us via email) was true after all.   Which in turn caused us to launch an investigation into the matter.   Just exactly what happened --- The following are our findings ; the facts as we see them:

  • That this was NOT an ISOLATED incident AND while garnering very little mainstream news media attention, --- had/has been going on for some time.   Provably since the passage of proposition 215 in Calif., (1996) which made it the first state to legalize Cannabis for medicinal uses.   Example: According to the Huffington Post / Thomson Reuters [4]
    Marijuana dispensaries in states that have legalized medical pot are struggling to obtain service from banks and credit-card companies, pressured by federal authorities . . . Operators and supporters of marijuana dispensaries say banks are turning away their business because they risk falling afoul of anti-money-laundering and drug-trafficking laws.   --   The largest U.S. bank, Bank of America Corp, [5]
    said it started withdrawing services from dispensaries after receiving a warning from the U.S. Drug Enforcement Administration in late 2007 or early 2008.   The DEA said it has also told other big banks that they face potential legal liabilities if they do business with the dispensaries. . . . “
    Note the year 2007/2008 – thus (again) while garnering very little mainstream news media attention, this situation has been going on for some time.


  • That the MAIN federal instigator was NOT the FDIC, BUT the U.S. Attorney Generals Office (part of the Department of Justice).   The following (public) memo’s are presented as evidence:

    Ogden
    SEE ADDENDUM-B -- MEMO

    The David Ogden memorandum - Oct. 2009
    Memorandum issued by Deputy U.S. Attorney General David Ogden stating that the Justice Department WOULD prosecute commercial enterprises that unlawfully market or sell marijuana for profit, (meaning All Cannabis dispensaries) will continue.   The memo also talks about money laundering as a reason for targeting a dispensary.


    Cole Memo
    SEE ADDENDUM-C - MEMO

    The James Cole memorandum - June 2011
    . . . in June 2011, Holder deputy James Cole issued a memo warning that "those who engage in transactions involving the proceeds" of marijuana sales "may be in violation of federal money-laundering statutes and other financial laws."


  • However, that the FDIC (despite their denials) ARE heavily involved in the situation.   According to the Huffington Post [3]
    “FDIC spokesman Greg Hernandez said the regulator has not put out "specific guidance" on medical marijuana businesses.”
    Which sounds innocent enough, but let us look at exactly what this means.   Literally that the FDIC (the one agency that could STOP this madness), refuses to take a position, one way or the other on the matter.   Meaning that they have sided with the status-quo --- And let’s be frank, in our culture to remain quiet about an injustice is equivalent to participation.

    The following was taken from www.BankersOnLine.com [6] which has a bankers chat-site.   Note that the FDIC is nether initiating nor doing anything to stop the present situation.   Which (again) translates into support for the status-Quo.
    Email from FDIC contact:
    "Well, according to discussions that I have had with law enforcement, it is their opinion that most of these entities do not follow all of the CA state legal requirements in order to meet the definitions of state law. Law enforcement has indicated to me that most of these co-ops do not meet all of the restrictions on obtaining the drug, supply lines for the drug, and distribution of the drug in order to comply with state law.   I am not an expert on state law, but it is my understanding that there are limited sources that they can purchase from and most of them do not purchase from these sources, but use known drug dealers or known drug supply lines.   It is my understanding that Wells and B of A will bank these places, and I would continue to leave this higher-risk area to them."

  • That the DEA itself (not to be out done by the justice department) quickly become involved in the intimidation campaign.   The following is taken directly from their official position paper on the subject:
    THE DEA POSITION ON MARIJUANA (January 2011) pg. 13 [7]
    “Drug proceeds generated by dispensaries taint more than just their owners.   Depository institutions (banks, savings and loans, etc) that knowingly avail and continue to afford their products and services to commercialized cannabis cooperatives or clubs in order to meet payroll, utilities, security, maintain leases and acquire additional merchandise, do so in violation of federal anti-money laundering statutes by promoting the specified unlawful activity of drug trafficking. “

  • HOWEVER, that the DEA itself, contrary to what is generally perceived DID NOT DIRECTLY send out any threatening letters.   Example: [3]
    “Bank of America spokeswoman Shirley Norton said the bank started exiting its relationships with dispensaries after getting the DEA alert.   "We do not provide banking services to medical marijuana businesses," Norton said. DEA spokesman Rusty Payne confirmed that the administration advised Bank of America that marijuana, medical or otherwise, is illegal under federal law and that offering financial services to dispensaries "can open you up to liability."
    As per my oral (phone) conversation with Rusty Payne (an often quoted DEA spokesperson in this matter), while confirming that the above statements, very clearly stated that:
    • The DEA DID NOT send out any letter to the Bank of America (or any other banking institution), nor initiate any action.

    • That whatever letters and/or memo’s spoken about WERE NOT written by the DEA, but by other Federal Organizations such as the Department of Justice, etc.   [museum comment – This seems to be true, it appears that ALL such threatening memo’s were in fact sent out by the Department of Justice (Attorney Generals Office), NOT the DEA.]

    • HOWEVER when contacted by the Bank of America (and others), did confirm the fact that they COULD indeed be held criminally liable as well as face other charges etc. -- However, that these were just GENERAL confirmations of the law (as interpreted by the DEA), and that they were simply answering inquiries as best they could on the matter, NOT initiating policy.

    • That they did make reference to their “The DEA Position on Marijuana” containing the following paragraph:
      “. . Depository institutions (banks, savings and loans, etc.) that knowingly avail and continue to afford their products and services to commercialized cannabis cooperatives or clubs in order to meet payroll, utilities, security, maintain leases and acquire additional merchandise do so in violation of federal anti-money laundering statutes by promoting the specified unlawful activity of drug trafficking.”
      The DEA knows nothing about any list of KEY BUZZ WORDS that could/would trigger any kind of banking investigation.

  • That (again) contrary to what is generally perceived, that there indeed is NO established LIST OF “Naughty Words” that would automatically raise a set of red flags, in circulation.   BUT that common horse sense dictate (given how intimidated bankers are on this subject), that some buzz words will automatically raise some eye-brows.   Example: “Mendocino Marijuana Museum” raises eyebrows ; The “Mendocino Censored Museum” does not.


  • That while the banking institutions have NOT YET been specifically targeted, by the federal government --- THAT just about ALL of them have gotten the message. . . .


    [ CONTINUED ===> ON TO PAGE THREE ]




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