LAUNDERING MARIJUANA MONEY WITH FEBREZE

Kristi Kelly didn’t realize how good she had it. For two years after opening a medical marijuana dispensary in 2009, she was able to bank like any small business owner—accepting credit cards, depositing cash, and writing checks. In 2011 the U.S. Department of Justice issued a memo reiterating that federal law prohibits helping businesses that sell marijuana, even if they are legal under state law. That made banks nervous, and one by one they closed Kelly’s accounts. While Colorado has legalized the sale of marijuana for recreational use, Kelly is still trapped in an all-cash economy, forced to develop elaborate systems to operate efficiently yet safely.

At the end of every day, two employees in each store count the cash in the registers, and both sign a form certifying that the money matches the receipts printed out. They organize the cash by denomination and wrap the stack with the paperwork, turning it into what Kelly calls “the cash burrito.”

Kelly locks up her cash and marijuana inventory separately. Few employees have access to the cash safes because cash is a more attractive target for thieves. Some of Kelly’s clients are businesses that store pot and bills together. She sprays their payments with air freshener to lose the smell. “It’s just so unprofessional,” she says.

“I mean, what other company keeps a stash of Febreze?”

To read the complete article, see: Navigating Legal Pot's All-Cash Economy (www.businessweek.com/articles/2014-02-27/navigating-legal-pots-all-cash-economy)

Wayne Homren, Editor

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