U.S. MEDICAL-MARIJUANA SHOPS STRUGGLE TO FIND BANKERS

Marijuana dispensaries in U.S. states that have legalized medical pot
are struggling to obtain service from banks and credit-card companies,
pressured by federal authorities who consider the $1.7-billion -a-year
business illegal.

Operators and supporters of marijuana dispensaries say banks are
turning away their business because they risk falling afoul of
anti-money-laundering and drugtrafficking laws.

The largest U.S. bank, Bank of America Corp., said it started
withdrawing services from dispensaries after receiving a warning from
the U.S. Drug Enforcement Administration in late 2007 or early 2008.
The DEA said it has also told other big banks they face potential
legal liabilities if they do business with the dispensaries.

"It was a nightmare," Sue Harank, co-owner of Denver-based dispensary
Alpine Herbal Wellness, said of her efforts to find a bank. The shop
opened in March 2010, and in the following six months two banks and a
credit union closed her accounts, she said.

"Both banks and the credit union pursued our business initially and
said they had talked to the corporate office and run it through legal,
but a month or two later they all reversed themselves," she said.

A study by financial-analysis firm See Change Strategy said the
medical-marijuana business would be worth $1.7 billion US in 2011 and
is growing. While some states have legalized dispensaries, the federal
government does not recognize states' authority to do so and it
considers the businesses illegal.

"They're operating according to state law, but because of conflict
with federal law, they can't get credit-card processing services and
they can't keep bank accounts open," said Keith Stroup, founder of
NORML, a lobbying organization working to legalize marijuana.

NORML says 16 states and the District of Columbia have enacted
medical-marijuana use statutes. Some states allow sales through
dispensaries, while others require the marijuana users to grow the
drug themselves.