Nessel: dispensary break-ins reason to change federal banking law

(The Center Square) – Michigan Attorney General Dana Nessel has issued warrants for 12 individuals allegedly responsible for more than 20 marijuana dispensary break-ins across the state.

The majority of defendants are being charged with safe breaking, a life felony; criminal enterprise, a 20-year felony; and breaking and entering a building with intent, a 10-year felony.

The department alleges that the defendants are tied to a string of break-ins to marijuana dispensaries across the state in May 2022. Many of the suspects were initially identified with the help of the Calhoun County Sheriff’s Department after attempting to break a safe stolen from one of the dispensaries by throwing it off the rooftop of a house. The investigation discovered 20 dispensaries with related break-ins during that time.

“This is an unfortunate example of why Congress must pass the Secure and Fair Enforcement (SAFE) Banking Act,” Nessel said in a statement. “Without access to traditional banking the cannabis industry is left as a ripe target for criminals. Any legal business should have fair access to our banking institutions for the security of their own business and employees as well as public safety.”

Two defendants were recently arrested in a separate case involving an alleged attempted theft from a dispensary in Bay County in March 2022. The Bay County Prosecutor’s Office is handling that investigation, which is separate from these charges.

Marijuana is legal in Michigan but illegal on the federal level so many banks still avoid providing banking services to cannabis companies.

Experts say the federal bill could slash red tape in a sprouting market plagued by costly compliances.

The SAFE Act would prohibit federal banking regulators from penalizing a depository institute for accepting a legitimate marijuana business as a client. It would also prohibit regulators from denying or limiting depository insurance to banks with legitimate marijuana clients.

Geoffrey Lawrence, a senior policy fellow at Reason Foundation, previously told The Center Square the Financial Crimes Enforcement Network issued some financial service guidelines for marijuana in 2014. Still, they were so cumbersome that servicing marijuana clients would cost more than the revenue generated.

“The idea is to make it easier for the marijuana business to deposit that cash, so they don’t have to just sit on it,” Lawrence said in a phone interview.

“The SAFE Banking Act is aiming to simplify the reporting process so that a bank might be able to accept the cash directly without having to go through these compliance companies,” Lawrence said.