[Nickshu]

Originally Posted by herr_oberst

I get that. I just don't get why they keep saying laundering. These pot dealers made their money on legal pot. The money is legit. They aren't trying to hide it, they just need somewhere to put it and hopefully get a dividend of some kind.

Laundering money by definition means the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.

We need a better term.

It's legal per the State of Colorado, but per the Feds it's not. Banks are insured by FDIC, which is Federal, not State of CO. Banks lose their federal backing if they accept money from anything that is federally legal, and hence they won't touch money from (or loan any money to) the "legal" pot business.