Too much cash a temptation
Marijuana shop robberies, killings drive a renewed push for federal banking reforms
SEATTLE — A surge in robberies at licensed cannabis shops — including a pistol-whipping, gunshots and killings in Washington state last month — is helping fuel a renewed push for federal banking reforms that would make the cash-dependent stores a less appealing target.
“It makes absolutely no sense that legal businesses are being forced to operate entirely in cash, and it’s dangerous — and sometimes even fatal — for employees behind the register,” Washington Sen. Patty Murray, the third-ranking Democrat, said in a statement.
Although 18 states have legalized the recreational use of marijuana, and 37 allow its medical use, it remains illegal under federal law. Because of that, big banks and credit card companies have long been reluctant to work with the industry, leaving the businesses heavily reliant on cash and making them attractive marks for robbers.
On the annual 4/ 20 marijuana holiday last week, Murray held a news conference at Salal Credit Union to say she will prioritize marijuana banking reform as part of her work as a key negotiator on a conference committee that is ironing out differences in House and Senate versions of a major federal competitiveness and innovation bill.
Cannabis industry activists said they consider her announcement an important signal that after years of work, the banking issue might finally get resolved this year, allowing financial institutions to handle marijuana money in states where it is legal without fear of federal prosecution, loss of their federal deposit insurance or other penalties.
There recently has been a massive spike in the robberies for reasons that aren’t entirely clear. Dozens of cannabis businesses in the San Francisco Bay Area were hit last fall in a wave of attacks that sometimes appeared coordinated. Industry trackers in Washington state have reported at least 80 so far this year, mostly in the Puget Sound region.
While dispensaries are frequent targets for robberies, the spate in Washington is helping drive the national conversation about banking reform. Last month, a suspect shot and killed an employee at a cannabis store in Tacoma; an ID checker shot and killed a robber in Covington; Seattle police shot and killed a suspect following a robbery in Bellevue; and a robber pistolwhipped a worker at an Everett shop.
In the last week, police have arrested a 15-year-old boy and a 16-year-old boy in the killing of employee Jordan Brown, 29, at Tacoma’s World of Weed. Authorities said the pair were responsible for at least 10 other armed robberies, including several at pot shops.
“The number of these robberies is shocking,” said David Postman, the chairman of the Washington Liquor and Cannabis Board.
The board in the past month has held public safety discussions with retailers, recruited law enforcement to talk to retailers about best practices, and worked with state financial regulators to highlight local banks and credit unions that work with the industry.
Marijuana shops that can afford it have hired private security guards, sometimes at costs of more than $50,000 a month for a round-the-clock detail, said Adan Espino, director of the Craft Cannabis Coalition.