Banking Bud: Why Pot Shops Have a Big Problem

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April 21 (Bloomberg) -- Denver Relief Founder Ean Seeb discusses the truth behind pot banking with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Personal expense with banking.

How is challenging is it for owners to get a bank account in colorado right now?

Thank you for having me.

Good to see you.

It is very difficult.

Denver relief had a bank account for the first four years it was in business.

Since then, we have lost three bank accounts over the past year and a half.

Last week, we were told we would be receiving a letter in the next couple of weeks giving us 45 days to find another bank.

We are in full compliance with state laws.

We are open about what we do.

Banking is a primary problem for us in the cannabis business.

You have the department of justice and treasury saying we're going to make it all right.

We're going to tell banks it is ok to service customers in the business.

It is one thing for them to say that.

It is another for banks to go along with it.

At the end of the day, aren't these banks worried the government could change its mind?

Fundamentally, there is an issue banking what is federally illegal.

That is right.

We were hoping in february when the treasury and u.s. attorney general came out with language telling the banking industry they were going to be ok to bank with us.

It was not clear enough language for the colorado bankers association.

They called it a red light saying it was not clear action giving them the authority to give us the ability to bank.

In the meantime, we are still dealing in large amounts of cash.

It is a security issue.

Is a public safety issue.

We need access to banking so we can operate like any other business.

This may be the fundamental problem in colorado.

The same will happen in washington.

If you don't have a mechanism in place to legitimize the industry, how is it ever going to become legitimate?

You are right.

There are a lot of problems.

Just yesterday, we had the high times cannabis cup.

Denver relief won second place.

Congratulations.

Thank you.

It was awesome to take on this medallion.

There were 35,000 people over two days that came from all over the world to experience the industry.

That was just at the cannabis cup.

We have close to 100,000 people at the rally downtown.

Nobody got hurt.

There were less than 20 people arrested for public intoxication.

Alcohol was served for the first time ever.

It is a real industry.

It is not going away.

We have seen the numbers in the retail industry in the first couple of months and colorado with millions of dollars going straight into tax revenues to build public schools.

It is a real industry.

Until we have access to banking and campaign normal taxes, there are going to be problems for the industry and operators and services.

You own denver relief.

Congratulations again on the award.

You also own a consulting company trying to help businesses setting up across the country in this field.

Is this a similar issue you hear about over and over again, the banking problem?

Not just in colorado but anywhere else where someone might be trying to operate a medicinal clinic?

Absolutely.

We operate denver relief consulting.

We have 36 active clients in nine states and d.c. we are also operating in canada.

Those states just emerging, massachusetts just awarded licenses.

Connecticut just awarded licenses.

A one-way and nevada are in the process --: weigh -- illinois and nevada are going through the application phase.

Until we see something on the federal level, that will be an issue.

We are hearing clients in some states like nevada where families have been around for decades and have had big casino

This text has been automatically generated. It may not be 100% accurate.

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