Bank to cut ties to medical marijuana industry

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ILLINOIS (WAND) – Medical marijuana companies in Illinois will soon operate without support from a bank known for backing them.

The Associated Press reports the Bank of Springfield is planning to shut down accounts belonging to those businesses on May 21. Their decision is related to the January reversal of regulations put out by former President Barack Obama’s administration, which discouraged the prosecution of marijuana business operators.

Since marijuana is still illegal under federal law, banks are hesitant to take part in the business. Without the bank’s backing, Illinois medical marijuana businesses likely won’t have accounts needed to pay workers, vendors and the U.S. government.

The medical marijuana industry in Illinois generated $8.5 million in retail sales in February.

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