Banks threaten cannabis sales in Uruguay

Banks+threaten+cannabis+sales+in+Uruguay

Uruguay pharmacies are facing challenges as banks refuse to work with companies connected to selling cannabis, although it is legal in the country.

An anonymous government official said Uruguayan banks risk the violation of international law which ban receiving money tied to cannabis.

In July, cannabis became available for sale at 16 pharmacies as part of a 2013 law which made the country first to completely legalize cannabis from growth to retail.

Diego Olivera, secretary-general of Uruguay’s National Drugs Council, said authorities are meeting with pharmacies to find out how many had been warned by banks and are looking for possible solutions.

Sen. Jose Mujica threatened gridlock in parliament if authorities failed to resolve the problem. Mujica was president when legalization passed in 2013 and saw this as his signature policy.

Running a business without being able to bank can be difficult in Uruguay, since the law prohibits cash or check payments for employees and requires salaries be paid by direct deposit.