TULSA, Okla.–A credit union here has informed its members it will no longer serve medical marijuana businesses.
Encentus FCU, one of the few financial institutions in the market serving the medical marijuana commercial market, has sent a letter to its clients that “we are not equipped to service the business accounts of our Medical Marijuana businesses,” according to the Tulsa World.
Encentus board chair Jana Hallman told the Tulsa World nine business accounts will be closed by Oct. 31 due to the change. “Upon significant review and research, we have come to realize that we do not have the staff nor the software sufficient to maintain the business activity,” Hallman wrote in the letter.
The Tulsa World quoted CEO Misty Potter’s comments in an earlier interview the credit union had entered the market after hearing from a dispensary owner’s request for banking services. “We can’t let these poor guys flounder around with a bunch of cash in their back closet,” she said then.
Potter told the Tulsa World she had been told by NCUA the credit union was free to work with businesses in the industry as long as it follows the Financial Crimes Enforcement Network — or FinCEN — Guidelines set forth in 2014.
‘A Lot of Time and Software’
Those guidelines basically turn staff into auditors, Hallman told the Tulsa World.
“It takes a lot of time and software to really be able to keep up with it like we need to,” Hallman said, “and at least right now we’re not in the position that we can pour those kinds of dollars into software (and staff).”
Hallman said that even with the charging of fees, the cost burden of continuing to serve cannabis-connected clients necessitated Encentus’ departure from the business, the publication added.
“It’s just that we cannot financially continue to do it. We’re sorry, but we are held responsible for keeping our financial institution in good standing,” Hallman was quoted as saying.