Bank of America closes cannabis research account

One of the most heavily used banks in the country decided to close the account of one of the DEA-approved cannabis and psychedelic research institutes in the country.

Bank of America suddenly shut down the Scottsdale Research Institute accounts last week with very little notice or explanation. The Scottsdale Research Institution received a letter dated October 12th stating that the account would be inaccessible in 21 days and would be completely closed within 30 days. The letter also states that “this decision is final and will not be re-examined”.

Dr. Sue Sisley, a prominent long-time medical cannabis researcher (particularly for its effectiveness in treating post-traumatic stress disorder) is the President and Principal Investigator at the Scottsdale Research Institute. She posted on Twitter about the situation on October 15.

“Bank of America is closing the account of a federally licensed cannabis researcher. SRI conducts FDA-approved controlled trials evaluating cannabis as a drug used to treat pain / PTSD in military veterans and terminally ill patients. She also attached a screenshot of an official document titled Controlled Substance Registration Certificate issued by the DEA to the Scottsdale Research Institute on June 29, 2021.

The Scottsdale Research Institute is federally licensed to study both medicinal cannabis and psychedelic substances. Most recently, in May, the institute was one of three organizations that received approval from the Drug Enforcement Administration (DEA) to cultivate cannabis for research purposes.

“Subject to final approval, DEA has determined, based on the information currently available, that a number of requests from manufacturers to grow marijuana for research in the United States appear to be in compliance with applicable legal standards and relevant laws,” wrote the DEA in its publication. “That is why DEA has presented these manufacturers with a Memorandum of Agreement (MOA) as the next step in the approval process.”

Apart from their promising research results, Dr. Sisley and the Scottsdale Research Institute are also taking an active approach to getting the industry to legalize and terminate cannabis. In Sisley vs. DEA, filed in May 2020, she claimed that the status of cannabis on Appendix I was against the constitution and that it should be postponed. After a year and a half, the United States Court of Appeals for the Ninth District dismissed the petition. However, one of the presiding judges, Judge Paul J. Watford, stated that the DEA may be forced to reconsider reclassification under the Controlled Substances Act in the near future.

“I agree that the petitioners have not exhausted their administrative remedies in this case and therefore I agree with the court’s opinion to reject their request for review,” wrote Watford. “I am writing separately to suggest that, in an appropriate case, the Drug Enforcement Administration may be required to initiate a marijuana reclassification process, given the petitioners’ strong arguments that the agency misinterpreted the Control Act by failing concludes that marijuana ‘has’ no currently accepted medical use in treatment in the United States.’ “

This is just the latest example of the lingering problem all cannabis companies have with banking solutions in almost every area of ​​the industry. On September 21, the US House of Representatives approved the SAFE Banking Act as part of the Defense Spending Act, the fifth time the Cannabis Banking Act has been passed in the House of Representatives. It remains to be seen whether this provision will be approved by the Senate.

Cannabis companies continue to struggle with legitimate banking solutions. It remains a problem to see how not just a pharmacy or a cultivation company, but a federally recognized organization has closed its account without prior warning or justification. For now, Dr. Sisley in a statement to Marijuana Moment that the Scottsdale Research Institute will move to a new banking solution with a bank that supports “scientific freedom”.